PSX benchmark index declines 0.6%WoW

Pakistan Stock Exchange (PSX) remained volatile during the week ended on October 09, 2026 amid continued attacks on key shipping routes. The benchmark Index declined by 1,066 points or 0.6%WoW to close at 167,089. Market activity also weakened, with average daily trading volume declining by 16.5%WoW to 541 million shares.

Meanwhile, Ukraine’s drone strikes on Russian refineries and concerns over US energy supplies amid Hurricane Isaias kept Brent oil prices above US$100/ bbl, despite improving traffic through the Strait of Hormuz and Trump’s claim that it would refrain from attacking Iran until the midterm elections scheduled for early November 2026.

The IMF reached a Staff-Level Agreement with Pakistan on the 4th review of EFF and 3rd review of RSF, acknowledging the Government’s policies in navigating the Middle East conflict.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased to US$21.5 billion as of October 02, 2026.

Pakistan raised PKR352 billion in the latest PIB auction, with yields rising across all tenors.

Banking sector deposits rose 14%YoY to PKR39.2 trillion at end August 2026.

Cement offtakes increased 6%YoY to 4.6 million tons in September 2026, reflecting improved local demand due to recovery in construction activity.

Cotton arrivals increased 5%YoY to 3.2 million bales during the same period.

Other major news flow during the week included: 1) Makkah defence alliance agrees to 'rapid force deployment' in Saudi Arabia, 2) GoP debt posts marginal decline to date, 3) GoP clears nine bidders for Gepco sale, 4) Bahrain working to 'speed up' approval of Pak-GCC free trade pact, and 5) Pakistan, Qatar agree to review LNG deal.

While the laggards were: Vanaspati & Allied Industries, Leasing companies, and Sugar, Textile spinning, Synthetic & Rayon, and Modarabas emerged top performers.

Major selling was recorded by Mutual Funds with US$17.6 million. On the contrary, net buyers were Individuals (US$11.4 million) and Companies (US$6.5 million).

Top performing scrips were: TGL, PSO, BML, AGP, and FCCL, while laggards included: SSOM, PGLC, CPHL, IMAGE, and PSX.

AKD Securities anticipates the market to improve on the back of strengthening economic indicators. Additionally, easing inflationary pressures would reduce probability of monetary tightening. Any positive development on Middle East conflict could moderate international oil prices and serve as a key trigger for market, paving the way for monetary easing.

The market continues to trade at attractive valuations. The top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.