RECORDER REVIEW

KARACHI: The Pakistan Stock Exchange (PSX) remained range-bound during the week ended August 28, 2026, with the benchmark KSE-100 Index gaining 530 points, or 0.3 percent, as the continued US-Iran deadlock and uncertainty over efforts to reopen the Strait of Hormuz kept investor sentiment cautious.

The KSE-100 Index closed at 177,696.52 points, compared with 177,166.52 points at the start of the week, reflecting a gain of 530.00 points or 0.3 percent. The geopolitical uncertainty also influenced international oil prices, with Brent crude declining 5 percent week-on-week to USD89.7 per barrel. In contrast, domestic fuel prices were revised upward during the week. Petrol prices increased by Rs4.82 per litre to Rs342.60 per litre, while High-Speed Diesel (HSD) prices rose by Rs6.91 per litre to Rs371.61 per litre.

Despite the subdued index performance, developments on the economic and sovereign front provided some support to the market. Moody’s upgraded Pakistan’s sovereign credit rating to B3 from Caa1, citing reduced external vulnerability and an improved sovereign risk profile.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) remained stable at USD17.1 billion on a week-on-week basis. An International Monetary Fund (IMF) mission is scheduled to arrive next month for the fourth review under the Extended Fund Facility (EFF).

As part of commitments under the IMF programme, particularly regarding the privatisation of state-owned enterprises, the Cabinet Committee on Privatisation (CCoP) approved a restructuring plan for the initial batch of three Power Distribution Companies (DISCOs).

Separately, the Ministry of Privatisation announced plans to privatise Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) in their existing operational structures. The Petroleum Division also initiated an overhaul of the national gas tariff mechanism, moving from a 12-slab structure to a uniform single rate, while restructuring targeted subsidies according to household income levels.

Overall market capitalisation remained virtually unchanged during the week. It stood at Rs19,885.39 billion (USD71.66 billion) at the close of the week, compared with Rs19,882.97 billion (USD71.63 billion) in the previous week.

Trading activity on the Readyboard, however, declined. Readyboard Average Daily Turnover (ADTO) fell 15.7 percent week-on-week to 712.69 million shares, compared with 845.71 million shares in the preceding week.

The Readyboard ADTO in value terms declined 13.8 percent to Rs35.37 billion, from Rs41.02 billion previously. In US dollar terms, daily turnover decreased 13.7 percent to USD127.44 million.

Trading volume remained concentrated in a handful of sectors. Refineries accounted for 24 percent of total market volume, making them the largest contributor to trading activity during the week.

Investment banks contributed 10 percent, miscellaneous sectors accounted for 8 percent, technology & communication represented 7 percent, and commercial banks contributed 6 percent. The remaining sectors collectively accounted for 45 percent of total market volume.

Sectoral performance was mixed. Textile composite led the gainers with an increase of 1.7 percent, followed by chemical at 1.5 percent, food at 0.9 percent, power at 0.8 percent, banks at 0.4 percent, automobiles at 0.3 percent, and cement at 0.2 percent.

The Fertilizer sector remained unchanged at 0.0 percent.

On the other hand, Pharmaceuticals declined 0.2 percent, Refinery fell 0.4 percent, Oil & Gas Exploration Companies (E&Ps) decreased 0.6 percent, Engineering declined 0.7 percent, Technology & Communication fell 1.1 percent, while Oil Marketing Companies (OMCs) posted the largest sectoral decline of 1.9 percent.

Among individual KSE-100 constituents, AICL emerged as the top gainer, closing at Rs93.89, up 8.9 percent over the week.

It was followed by THALL, which closed at Rs564.26, gaining 8.3 percent; KTML at Rs43.19, up 7.4 percent; POWER at Rs23.36, higher by 7.3 percent; ABOT at Rs971.67, up 6.8 percent; BOP at Rs34.97, gaining 6.5 percent; and DCR at Rs41.30, up 5.4 percent.

On the losing side, SRVI recorded the largest decline, closing at Rs200.02, down 90.9 percent.

PGLC followed, closing at Rs15.61, down 19.5 percent, while TRG declined 8.6 percent to Rs54.99. NBP fell 6.7 percent to Rs188.95, HMB decreased 5.7 percent to Rs102.01, AGP declined 4.9 percent to Rs169.20, and BNWM lost 4.2 percent to close at Rs66.98.

Looking ahead, analysts expect the market to improve on the back of strengthening economic indicators and easing geopolitical tensions. The brokerage noted that a potential US-Iran agreement could moderate international oil prices towards pre-conflict levels.

The market is currently trading at a forward Price-to-Earnings (P/E) ratio of 7.0 times.