KSE-100 ends at 168,155 points as geopolitical uncertainty, higher yields and economic developments shape investor sentiment.

KARACHI: The KSE-100 Index closed at 168,155 points, declining 1.5% week-on-week (WoW) and shedding around 2,610 points, as geopolitical uncertainties weighed on investor sentiment and raised concerns over regional stability.

According to a research report by Arif Habib Limited, tensions involving Saudi Arabia and Yemen’s Houthis remained a key factor influencing market sentiment, while uncertainty surrounding diplomatic efforts contributed to cautious trading.

The broader economic outlook remained mixed. Pakistan’s crude and petroleum product imports increased 21% year-on-year (YoY) in August 2026, mainly due to a 55% rise in crude oil imports.

Local crude production also increased 7%, taking the share of imported crude in the overall mix to 82%, compared with 75% previously.

In the latest Market Treasury Bills (MTB) auction, the government raised Rs880 billion, while yields increased across all tenors by 49.5 to 75 basis points. The three-month tenor attracted the largest amount, with Rs480 billion raised.

Meanwhile, Federal Board of Revenue (FBR) tax collection reached Rs1,344 billion in September, marginally exceeding the monthly target of Rs1,343 billion. Quarterly collection stood at Rs3,066 billion, which was Rs13 billion above the target.

Headline CPI inflation eased to 10.3% YoY in September, compared with 11.2% in August.

Pakistan’s total liquid foreign exchange reserves stood at around $26.8 billion, while State Bank of Pakistan (SBP) reserves reached approximately $21.4 billion. The latest official data showed SBP reserves at $21.439 billion at the end of the week ended September 25.

The petroleum sector also recorded notable activity. Refinery upliftment increased 32% YoY to 1.084 million tonnes in September, while OMC sales declined 2% YoY to 1.35 million tonnes amid higher fuel prices.

The Pakistani rupee remained broadly stable, closing at Rs277.07 against the US dollar, with a marginal weekly increase of 0.03%.

Going forward, market activity is expected to remain sensitive to geopolitical developments and progress in Pakistan’s ongoing engagement with the IMF.

The KSE-100 is currently trading at a reported price-to-earnings ratio of 7.5, with a dividend yield of 6.7%.