The benchmark KSE-100 Index posted a massive weekly gain of more than 8,000 points during the week ended May 8, 2026, driven by improving investor sentiment amid hopes of easing geopolitical tensions in the Gulf region.
According to Arif Habib Limited, the benchmark index climbed to 171,116 points, recording a 5% week-on-week increase equivalent to a gain of 8,122 points.
Analysts said optimism surrounding a potential peace agreement between the United States and Iran fueled strong buying activity across major sectors at the Pakistan Stock Exchange.
Trade deficit widens in April 2026
During the week, the Pakistan Bureau of Statistics released trade data showing Pakistan’s trade deficit widened to $4.1 billion in April 2026.
Exports for the month stood at $2.5 billion, reflecting a 14% year-on-year increase, although declining 6.3% compared to the previous month.
Imports surged to $6.6 billion, posting a 17.1% yearly increase and a sharp 28.4% monthly rise.
Cumulatively, Pakistan’s trade deficit during the first 10 months of FY2026 increased by 20.3% year-on-year to $32 billion.
OMC sales decline amid higher fuel prices
Oil marketing company (OMC) sales during April 2026 declined by 7% year-on-year to 1.36 million tons due to higher petrol and diesel prices.
However, cumulative OMC sales for the first 10 months of FY2026 rose 4% year-on-year to 13.76 million tons.
Refinery uplift also showed positive momentum, rising 12.7% year-on-year during April, supported by stronger demand for high-speed diesel (HSD) and furnace oil (FO).
HSD volumes increased 11.3% to 442,000 tons, while FO volumes surged 26% year-on-year to 235,000 tons.
Fertilizer and cement sectors show strong growth
The fertilizer sector posted strong growth in April, with urea offtakes rising 85% year-on-year to 463,000 tons — the second-highest April sales level on record.
Cumulative urea sales during the first four months of calendar year 2026 increased 11% year-on-year to 1.5 million tons.
Meanwhile, cement dispatches grew 11% year-on-year to 3.89 million tons during April 2026.
Local cement dispatches jumped 20% year-on-year, although exports declined 18%.
Overall cement dispatches during the first 10 months of FY2026 rose 10% year-on-year to 43.43 million tons.
Industrial output and energy production improve
Large Scale Manufacturing Industries (LSMI) output increased 11% year-on-year in March 2026 despite a 9.3% monthly decline.
For the first nine months of FY2026, LSMI growth stood at 6.5%.
Oil and gas production data also showed improvement during the week, with gas production rising 4.5% week-on-week to 3,079 mmcfd, mainly due to higher output from Uch and Qadirpur fields.
Oil production increased 2.7% week-on-week to 72,167 barrels per day.
PKR remains stable against US dollar
The Pakistani rupee remained largely stable against the US dollar during the week.
The currency closed at Rs278.70 per dollar compared to Rs278.77 in the previous week, indicating relative exchange rate stability despite ongoing global uncertainty.
Outlook remains tied to geopolitical developments
Analysts believe market performance in the coming week will largely depend on further geopolitical developments in the Gulf region.
A potential agreement between the US and Iran could further strengthen investor confidence and support continued bullish momentum at the Pakistan Stock Exchange.
Market sentiment may also improve if the International Monetary Fund approves the disbursement of $1.2 billion under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).
According to analysts, the KSE-100 index is currently trading at a price-to-earnings ratio of 8.0x while offering an attractive dividend yield of around 6.4%, making Pakistani equities appealing for investors.