RECORDER REVIEW

KARACHI: The Pakistan Stock Exchange (PSX) came under pressure during the week ended September 4, with the benchmark KSE-100 Index falling 1.3 percent as renewed US-Iran military skirmishes heightened geopolitical uncertainty and a sharp rise in international oil prices added to concerns over inflation and the external account.

According to weekly performance data released by JS Global Capital Limited, the KSE-100 Index shed 2,367.71 points, or 1.3 percent week-on-week (WoW), to settle at 175,328.81 points, compared with its opening level of 177,696.52 points.

The broader market also remained under pressure. The BRIndex100 opened at 19,603.07 points and declined to 19,359.39 points by the end of the week, recording total turnover of 2.82 billion shares. The BRIndex30, meanwhile, opened at 72,099.19 points and closed at 71,381.77 points, with total weekly turnover of 1.90 billion shares.

The decline in equities came against a backdrop of rising global energy prices. Brent crude oil prices increased 6percent WoW to USD94.47 per barrel amid concerns over supply disruptions in the Middle East. The increase in international oil prices was also reflected in domestic fuel prices, with petrol prices rising Rs6.40 per litre during the week to Rs349 per litre, while High-Speed Diesel (HSD) prices increased Rs7 per litre to Rs374.31 per litre.

The higher fuel prices coincided with an acceleration in domestic inflation. Consumer Price Index inflation rose to 11.1 percent in August 2026, adding another pressure point for investors already assessing the implications of higher energy costs.

The country’s external position also showed signs of pressure, with the trade deficit widening 10percent YoY in August 2026, primarily due to a 7percent YoY increase in overall imports. Consequently, the cumulative trade deficit for the first two months of FY27 expanded 18percent YoY to USD7.1 billion.

On the fiscal side, the Federal Board of Revenue collected Rs901 billion in August 2026, missing its monthly collection target by Rs29 billion. Despite the monthly shortfall, FBR remained Rs12 billion above its cumulative tax collection target for the first two months of FY27.

Pakistan also raised a record USD3 billion through an international Eurobond issuance, with interest rates ranging between 7.5 percent and 7.9 percent. The international borrowing came alongside a major domestic debt-management development, as the federal government completed an early retirement of a record Rs1.2 trillion in debt owed directly to the State Bank of Pakistan.

In the primary money market, the government raised Rs680 billion through the latest Treasury bill auction. Cut-off yields continued to move lower, declining by 5 to 8 basis points across most tenors, with the six-month T-bill being the only exception. Meanwhile, SBP-held foreign exchange reserves remained stable at USD17.1 billion.

Readyboard Average Daily Turnover declined 15.7 percent WoW to 712.69 million shares from 845.71 million shares in the previous week. Readyboard ADTO in value terms fell 13.8 percent to Rs35.37 billion from Rs41.02 billion, while dollar-denominated daily turnover declined to USD127.44 million from USD147.75 million.

Despite the weakness in the benchmark, total PSX market capitalisation remained broadly unchanged at Rs19,885.39 billion, equivalent to USD71.66 billion.

Sector-wise, trading remained heavily concentrated in a handful of areas. Refineries accounted for the largest share of market volume at 24percent, followed by Investment Banks at 10percent, miscellaneous sectors at 8percent, Technology & Communication at 7percent, and Commercial Banks at 6percent. The remaining sectors collectively accounted for 45percent of total market volume.

Sectoral price performance was mixed. Textile Composite led the gainers, rising 1.7percent WoW, while Chemicals increased 1.5percent, Food gained 0.9percent, Power rose 0.8percent, Commercial Banks advanced 0.4percent, Automobiles increased 0.3percent and Cement gained 0.2percent.

On the declining side, Pharmaceuticals fell 0.2 percent, Refineries declined 0.4 percent, Exploration & Production companies dropped 0.6 percent, Engineering decreased 0.7 percent, Technology & Communication fell 1.1 percent, and Oil Marketing Companies recorded the steepest decline of 1.9 percent.

At the individual-stock level, Adamjee Insurance Company Limited emerged as the top gainer among KSE-100 constituents, rising 8.9percent to close at Rs93.89. Thal Limited gained 8.3 percent to Rs564.26, Kohinoor Textile Mills increased 7.4 percent to Rs43.19, Power Cement rose 7.3 percent to Rs23.36, Abbott Laboratories gained 6.8percent to Rs971.67, Bank of Punjab increased 6.5percent to Rs34.97, and Dolmen City REIT advanced 5.4 percent to Rs41.30.

On the losing side, Service Industries Limited recorded the largest decline, falling 90.9 percent to close at Rs200.02. Pak-Gulf Leasing Company Limited declined 19.5 percent to Rs15.61, TRG Pakistan fell 8.6 percent to Rs54.99, National Bank of Pakistan decreased 6.7percent to Rs188.95, Habib Metropolitan Bank declined 5.7 percent to Rs102.01, AGP Limited fell 4.9 percent to Rs169.20, while Bannu Woollen Mills declined 4.2 percent to Rs66.98.

Analysts say, overall, the week’s trading reflected a combination of geopolitical uncertainty, higher international oil prices, renewed inflationary pressure and a widening external trade gap.

While fiscal developments, international borrowing and stable foreign exchange reserves provided some support, the 1.3 percent decline in the KSE-100 and contraction in Readyboard activity indicated cautious positioning.