Pakistan Stock Exchange Drops 1,138 Points Despite IMF Agreement as Oil Prices Rise

KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange (PSX) ended Thursday’s trading session sharply lower, with its benchmark KSE-100 index losing 1,138.50 points, despite optimism surrounding Pakistan’s latest staff-level agreement with the International Monetary Fund (IMF).

The benchmark index closed on October 8, 2026, at 167,441.90 points, registering a decline of 0.68% as investors booked profits and renewed Middle East tensions weighed on market sentiment.

KSE-100 closing index

167,441.90

−1,138.50 (−0.68%)

Oct 8 Close

Intraday high

169,486.60

Trading volume

365.9M

Shares

Trading value

Rs17.7B

Previous volume

586.9M

Shares

Early Rally Fades as Selling Pressure Intensifies

The trading session began positively, with the KSE-100 gaining approximately 906 points as investors responded to Pakistan’s progress in negotiations with the IMF.

The index climbed to an intraday high of 169,486.60 points before reversing direction.

Selling pressure increased during the session, particularly in banking, fertiliser, technology and energy-related stocks.

United Bank Limited, Fauji Fertiliser Company, Systems Limited, Engro Fertilisers and Pakistan Oilfields were among the major companies contributing to the benchmark’s decline.

Together, these five stocks reduced the index by approximately 394 points.

IMF Agreement Fails to Sustain Investor Confidence

Pakistan and the IMF have reached a staff-level agreement that could unlock approximately $1.2 billion in additional financing under the Extended Fund Facility and Resilience and Sustainability Facility.

The agreement represents a significant step in Pakistan’s economic programme, but the disbursement remains subject to approval by the IMF Executive Board.

Initial optimism surrounding the agreement supported early buying activity.

However, concerns about rising global oil prices and geopolitical instability outweighed the positive economic development.

Investors remained cautious about the potential impact of higher imported energy costs on inflation, corporate profitability and Pakistan’s external finances.

Middle East Tensions Weigh on Market Sentiment

Renewed attacks involving Yemen’s Houthi movement and Saudi Arabia added to concerns about regional security.

Oil supply uncertainty surrounding the Strait of Hormuz also increased pressure on financial markets.

For Pakistan, which relies heavily on imported petroleum, sustained increases in international crude prices could raise energy import costs and complicate inflation management.

Market participants consequently remained cautious despite progress in the IMF programme.

Trading Activity Declines Sharply

Investor participation weakened during the session, with trading volume falling to approximately 365.9 million shares, compared with 586.9 million shares in the previous session.

The total value of shares traded stood at approximately Rs17.7 billion.

Market breadth — 496 companies

Advanced

130

Declined

324

Unchanged

42

K-Electric led the volume chart with 29.7 million shares traded, closing at Rs5.96 after declining by Rs0.08.

Cnergyico Pakistan followed with 21.3 million shares, closing at Rs12.39, while Waves Home Appliances recorded 16.9 million shares and ended at Rs7.77.

Foreign investors were net sellers of approximately Rs245 million worth of shares.

What Investors Will Watch Next

Market attention is expected to remain focused on developments in the Middle East, movements in international crude oil prices and the IMF Executive Board’s next steps.

Although the staff-level agreement offers a potential source of financial support for Pakistan, Thursday’s session demonstrated that external economic and security risks continue to influence investor confidence.

The KSE-100’s October 8 decline reflects the market’s response to several competing developments, rather than a rejection of the IMF agreement itself.