Pakistan’s benchmark KSE-100 Index declined 1.3% week-on-week to 175,329 points as renewed US-Iran tensions and weakness in major banking and cement stocks offset support from corporate earnings.
The KSE-100 Index ended the week at 175,329 points, down 1.3% WoW, as renewed geopolitical tensions between the United States and Iran kept investors cautious. Positive corporate earnings provided some support, but selling pressure in key sectors limited the market’s recovery.
The banking sector was the largest drag on the benchmark, contributing 1,318 negative points, followed by cement at 334 points, exploration and production (E&Ps) at 194 points, technology at 185 points and power at 126 points.
By contrast, investment banks contributed 151 points, while fertiliser, auto parts, transport and textile composite sectors added 82, 31, 10 and three points, respectively.
At the stock level, EFERT, ENGROH, OGDC, THALL and ILP were the leading positive contributors, collectively supporting the index by 475 points. UBL, HBL, PPL, MEBL and LUCK were the biggest drags, collectively removing 1,320 points.
Key economic developments
Pakistan’s Federal Board of Revenue collected PKR902 billion in August 2026, up 2% YoY but PKR28 billion below its PKR930 billion target. However, 2MFY27 collections reached PKR1.72 trillion, exceeding the period target by PKR12 billion.
Inflation accelerated to 11.15% YoY in August, compared with 9.2% in July, highlighting renewed price pressures.
Meanwhile, Pakistan recorded a $3.2 billion trade deficit during August as imports rose 7.4% YoY to $5.7 billion, outpacing the 3.8% increase in exports to $2.5 billion.
The petroleum sector also remained in focus. OMC sales fell 3% YoY to 1.26 million tonnes, while refinery upliftment increased 32.2% YoY to 964,000 tonnes.
Market outlook
Investor attention is likely to remain focused on geopolitical developments, the ongoing earnings season and Pakistan’s upcoming IMF review. Despite recent volatility, the KSE-100 is trading at a P/E of 7.8x with a dividend yield of 6.3%.
Top stock picks include OGDC, PPL, FFC, LUCK, MLCF, NBP, HUBC, PSO, DGKC and SAZEW.
Average daily volumes increased 7.6% WoW to 766.7 million shares, while average traded value declined 6.1% to $119.7 million.