Pakistan Stock Market Weekly Summary

Week 5 of July 2026 (27th July – 31st July 2026)

The Pakistan Stock Exchange (PSX) remained under pressure during the final week of July, with the KSE-100 Index declining by 2,168 points (-1.22%) to close at 176,094. Although the market opened the week on a positive note, three consecutive sessions of profit-taking outweighed the initial gains before a modest recovery on Friday.

Looking at the broader trend, the KSE-100 Index has declined from its July peak of 185,372 to 176,094, representing a correction of 9,278 points (approximately 5.0%). This reflects a month-long consolidation after the strong rally witnessed at the beginning of July, with investors gradually booking profits while waiting for fresh economic and corporate catalysts.

Sector Performance

As Shaheer Innovation does not invest or operate in the Banking sector, our market analysis focuses exclusively on Shariah-compliant non-banking sectors.

During the week, Technology & Communication, Power, Textile, Automobile, and EMC (Various) sectors recorded positive contributions and attracted selective buying, indicating that investors continued accumulating fundamentally strong companies despite overall market weakness.

On the other hand, Oil & Gas Exploration (E&P), Cement, Fertilizer, and Pharmaceutical sectors remained under selling pressure. Weak international oil prices, slower industrial demand, falling fertilizer prices, and continued profit-taking led these sectors to contribute negatively to the market during the week.

Challenges Affecting the Market

The broader market remained under pressure due to several ongoing concerns:

• Three consecutive trading sessions of profit-taking following Monday's rally.

• Continued weakness in Oil & Gas Exploration (E&P), Cement, and Fertilizer sectors.

• Rising uncertainty in global commodity and energy markets.

• Lower investor participation during the middle of the week.

• Overall cautious market sentiment amid economic uncertainty.

Overall Market Analysis (Excluding Banking Sector)

Excluding the banking sector, the market continued its corrective phase during the final week of July. Since the KSE-100 Index reached 185,372 in the first week of July, the market has retraced approximately 5.0%, closing the month at 176,094. The majority of this correction has been driven by sustained selling in Oil & Gas Exploration (E&P), Cement, Fertilizer, and Pharmaceutical companies, all of which form an important part of the Shariah-compliant investment universe.

Despite this broader weakness, the market displayed encouraging signs of selective buying. Technology & Communication, Power, Textile, Automobile, and EMC (Various) sectors outperformed the broader market and continued attracting investor interest, suggesting that institutional and long-term investors are gradually shifting toward companies with stronger earnings potential and attractive valuations.

The recovery seen on the final trading day also indicates that buying interest is beginning to emerge near support levels. While overall sentiment remains cautious, the pace of the correction has slowed compared with previous weeks, suggesting that much of the profit-taking may already be reflected in current prices.

From a medium-term perspective, the correction from 185,372 to 176,094 appears to be a healthy consolidation rather than a deterioration in market fundamentals. If macroeconomic conditions stabilize, corporate earnings improve, and investor confidence strengthens, many quality Shariah-compliant non-banking companies could be well-positioned for recovery in the coming weeks.