PSX benchmark index up 11.2%WoW

Pakistan Stock Exchange (PSX) witnessed bullish momentum during the week ended on April 10, 2026, driven by Pakistan-mediated two-week ceasefire between the United States and Iran. The benchmark index surged by 16,795 points or 11.2%WoW to close at 167,191, the highest weekly gain in 47 months.

Market participation also improved significantly, with average daily traded volumes rising by 52%WoW to 918 million shares.

This breakthrough is set to be followed by further round of negotiations in Islamabad over the weekend, aimed at reaching long-term peace solution.

The aforementioned diplomatic development led to a broad-based correction in international oil prices, which declined below the US$100/ bbl mark after 28-day streak with Arab Light prices declining by 13%WoW to US$97.6/ bbl.

Pakistan-Afghanistan peace talks, mediated by China, concluded with both sides agreeing to explore comprehensive solutions.

Remittance for March 2026 were reported at US$3.8 billion, down 6%YoY, but up 17%MoM, taking total for 9MFY26 to US$30.3 billion, up 8%YoY.

The GoP external debt declined by 1% FYTD to PKR23,203 billion as of end February 2026.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased to US$16.4 billion as of Apr 04, 2026.

Other major news flow during the week included: 1) IMF expects to provide vulnerable economies hit by Middle East war up to US$50 billion, 2) Prime Minister pushes currency swap deals, 3) Banking deposits increased by 20%YoY to PKR37 trillion be end February 2026, 4) Pakistan repays US$1.43 billion Eurobond in external debt, 5) World Bank cuts Pakistan’s GDP forecast to 3%, and 6) IMF to dispatch mission to Pakistan for budget for FY27 consultation next month.

Cement, Engineering, and Textile emerged as top performing sectors, while Leasing and Real Estate Investment Trust emerged laggards.

Major buying was recorded by Mutual Funds with a net buy of US$53.8 million. Banks and Insurance remained seller with a net sell of US$28.9 million and US$11.8 million.

Top performing scrips were: GAL, KTML, MLCF, DGKC, and FCCL, while laggards included: PGLC, NESTLE, and DCR.

Going forward, upcoming negotiations in Islamabad would remain a key focus for investors, with any positive developments likely to drive further market recovery; particularly given the improved diplomatic positioning of Pakistan.

According to AKD Securities, despite the recent recovery, market continues to trade at attractive valuations.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.