KARACHI, April 11 – The benchmark KSE-100 index at the Pakistan Stock Exchange posted a sharp weekly gain of 11.2% for the week ended April 10, driven by improved investor sentiment following a ceasefire in the Middle East brokered by Pakistan, analysts said.
The index closed at 167,191 points, rising by 16,793 points week-on-week, marking its strongest weekly performance since May 2025. Market participants said the rally gathered pace midweek after geopolitical tensions eased, triggering aggressive buying across key sectors and even leading to an upper circuit halt during one trading session.
Analysts at Arif Habib Limited said the market had opened the week cautiously amid global uncertainty but quickly turned bullish after the ceasefire announcement, with energy, banking and cement stocks leading the surge.
The strong performance came despite mixed macroeconomic indicators. Pakistan’s central government debt rose by 0.7% month-on-month to Rs79.9 trillion as of February 2026, reflecting continued fiscal pressures. However, improving external indicators provided some support.
Remittances increased by 8% year-on-year to $30.3 billion during the first nine months of FY26, while inflows under the Roshan Digital Account (RDA) reached $12.4 billion by March. The country also successfully repaid a $1.3 billion Eurobond on April 8, along with coupon payments, reinforcing investor confidence in its external position.
Meanwhile, global oil prices declined sharply during the week, with Brent crude falling 12% to $95.92 per barrel, easing inflationary concerns and supporting equities. Pakistan’s foreign exchange reserves held by the State Bank of Pakistan rose slightly to $16.4 billion.
On the inflation front, the Sensitive Price Index (SPI) recorded a 12.15% year-on-year increase, while the Pakistani rupee remained largely stable against the U.S. dollar.
Analysts said the market’s near-term direction would depend on the outcome of ongoing diplomatic engagements involving the United States and Iran, as well as the upcoming corporate earnings season.
The KSE-100 index is currently trading at a price-to-earnings ratio of 8.2 times, offering a dividend yield of around 6.2%, making valuations attractive relative to regional peers.
Top stock picks highlighted by analysts include National Bank of Pakistan, Oil and Gas Development Company, Pakistan Petroleum Limited, Fauji Fertilizer Company, Lucky Cement, Hub Power Company, Pakistan State Oil and Attock Refinery.
Market participants expect volatility to persist, but sustained geopolitical stability could further strengthen investor confidence and support continued gains in the coming weeks.