PSX sheds 670 points amid economic concerns

PSX sheds 670 points amid economic concerns

The Pakistan Stock Exchange (PSX) lost around 670 points, or 0.4%, during the outgoing week as geopolitical uncertainty, high crude oil prices and fears of a possible interest rate hike weighed on investor sentiment.

The benchmark KSE-100 index started the week on a negative note, falling 1,965 points, or 1.18%, on Monday to settle at 165,124 amid political uncertainty. Selling pressure continued on Tuesday, pushing the index down another 348 points, or 0.21%, to 164,776, below the key psychological level of 165,000.

The market staged a recovery on Wednesday, gaining 641 points, or 0.39%, to close at 165,418 and reclaim the 165,000 mark. The upward trend continued on Thursday, with the index rising 769 points, or 0.46%, to 166,186. On Friday, the benchmark added 234 points, or 0.14%, to finish at 166,420.

In its weekly report, Arif Habib Limited (AHL) attributed the market’s overall decline to persistent geopolitical uncertainty, noting that the benchmark lost 670 points on a week-on-week basis.

Economic indicators also shaped market sentiment. Pakistan’s trade deficit widened 5% year-on-year (YoY) and 7% month-on-month (MoM) to $3.53 billion in September 2026. Exports rose 18% YoY and 17% MoM to $2.96 billion, while imports increased 11% on both annual and monthly comparisons to $6.49 billion.

During the first quarter of fiscal year 2026-27, the trade deficit expanded 15% YoY to $10.77 billion. Exports grew 11% to $8.45 billion, while imports climbed 13% to $19.21 billion.

Meanwhile, the government raised Rs685.5 billion through a treasury bill auction, exceeding its target of Rs550 billion. According to AHL, cut-off yields increased by 0.5 basis points for three-month and 12-month papers. In contrast, yields fell by 5.1 basis points for one-month bills and 17.9 basis points for six-month securities. Three-month treasury bills attracted the largest share, generating Rs310.1 billion.

Investor participation in the stock market also reached a new milestone. The PSX recorded its highest-ever monthly increase in investor accounts in September, adding 25,280 accounts. The total number of unique identification numbers (UINs) reached a record 656,000, up 55% from 423,000 in September 2025, indicating broader participation in the country’s capital market.