Weekly Report 1-3 July 2026
7/28/20262 min read
Pakistan Stock Market Weekly Summary
Week 1 of July 2026 (1st July – 3rd July 2026)
The Pakistan Stock Exchange (PSX) started July on a strong note, with the KSE-100 Index gaining 5,070 points (+2.83%) to close at 185,372. Market sentiment remained bullish throughout the shortened trading week, supported by broad-based buying across several major sectors and improving investor confidence.
Excluding the banking sector, the market's positive momentum was primarily driven by the following sectors:
Oil & Gas Exploration (E&P): The sector performed strongly, benefiting from improved global oil prices and renewed investor interest in energy stocks.
Cement: Cement companies recorded healthy gains as expectations of improved domestic demand and infrastructure activity supported buying.
Power: The power sector remained stable and contributed positively, reflecting improved sentiment and investor confidence.
Fertilizer: Fertilizer stocks delivered modest gains, supported by expectations of stable earnings and continued demand within the agricultural sector.
Sector Performance
Among the KMI-30 sectors, the strongest performers were:
Banks (excluded from analysis as we don't trade in Banking sector)
Oil & Gas E&P: +1.23%
Cement: +0.74%
Power: +0.50%
Fertilizer: +0.33%
The weaker-performing sectors included:
Technology: -0.47%
Pharmaceuticals: -0.32%
Automobiles: -0.41%
Textile: -0.51%
Oil Marketing Companies (OMCs): -0.67%
Positive Market Drivers
The market received support from several favorable macroeconomic developments:
Declining global oil prices, helping ease inflationary concerns.
Improved global investor sentiment and risk appetite.
Stability in the Pakistani Rupee against the US Dollar.
Strong corporate earnings reported by key listed companies.
Continued government focus on economic growth and reforms.
Challenges
Despite the positive week, investors remained cautious due to:
Uncertainty surrounding the IMF review and fiscal reforms.
Ongoing geopolitical tensions.
High interest rates affecting business activity.
Profit-taking in selected large-cap stocks.
Continued volatility in global commodity prices.
Overall Market Analysis (Excluding Banking Sector)
The broader market demonstrated encouraging strength during the first week of July. Buying interest extended across Oil & Gas E&P, Cement, Power, and Fertilizer, indicating improving investor confidence beyond financial stocks. While sectors such as Technology, Automobiles, Pharmaceuticals, Textiles, and OMCs experienced mild selling pressure, their declines were not significant enough to offset gains in the market's stronger sectors.
Overall, the market maintained a constructive and bullish tone, with participation across multiple industries suggesting that investor confidence was improving. If positive economic developments continue and external risks remain contained, the market could sustain its upward momentum in the coming weeks.