Stocks end week flat amid oil, geopolitical uncertainty
KARACHI: The Pakistan Stock Exchange (PSX) remained volatile during the outgoing week, with the KSE-100 index closing largely flat as uncertainty over the US-Iran conflict kept oil prices elevated and weighed on investor sentiment. Meanwhile, an International Monetary Fund (IMF) staff mission arrived for talks with Pakistani authorities for the release of tranches under two ongoing programmes.…
The Pakistan Stock Exchange (PSX) concluded the recent week with minimal movement, as uncertainty surrounding the US-Iran conflict and oil market fluctuations dampened investor confidence. The KSE-100 index finished at 170,765 points, a 0.1% decrease from the prior week's 170,885 points. This flat performance occurred despite a notable $5 billion investment plan by four out of the country's five oil refineries, aimed at upgrading refining capacity and transitioning to cleaner fuels.
The International Monetary Fund (IMF) dispatched a mission to Pakistan for discussions on releasing funds under two existing programs. As global energy markets grappled with the US-Iran conflict and divergent signals from the United Nations General Assembly in New York, Brent crude oil prices edged 1% higher at $104.9 per barrel.
Locally, power generation surged 5.1% year-on-year in August, driven by increased hydropower, coal, gas, and wind energy production, though costs rose due to higher reliance on liquefied natural gas (RLNG) and elevated international oil prices. Oil production in Pakistan ticked up 1.4% week-on-week to 68,500 barrels per day, primarily due to higher output from Makori East, Maramzai, and Mardankhel fields.
Conversely, gas production dropped 2.5% to 2,934 million cubic feet per day, primarily due to reduced output from Mari, Uch, Kandhkot, and Shewa fields. Liquid foreign exchange reserves in Pakistan edged up by 0.07% to $26.8 billion as of September 18, with State Bank reserves rising to $21.4 billion and commercial banks' reserves at $5.41 billion.
The market remains highly volatile, with the KSE-100 trading at a forward price-to-earnings ratio of approximately 7.2 times, according to AKD Securities.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
