Weekly Report 6-10 July 26

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Pakistan Stock Market Weekly Summary

Week 2 of July 2026 (6th July – 10th July 2026)

The Pakistan Stock Exchange (PSX) experienced a challenging week, with the KSE-100 Index declining by 6,512 points (-3.45%) to close at 182,242. Market sentiment remained bearish throughout the week as investors adopted a cautious approach amid persistent economic uncertainties and profit-taking across several major sectors. Despite the overall market decline, a few non-banking sectors demonstrated resilience and attracted selective buying.

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, Power, Cement, Technology, Oil & Gas Exploration (E&P), and Pharmaceuticals remained relatively resilient and recorded positive returns, reflecting selective investor confidence despite the broader market weakness. On the other hand, Automobiles, Textiles, Oil Marketing Companies (OMCs), Fertilizer, and other cyclical sectors faced selling pressure due to cautious investor sentiment and profit-taking.

Positive Market Drivers

Despite the bearish trend, several factors continued to provide support to selected sectors:

• Declining global oil prices, easing inflationary concerns.

• Improvement in global investor risk appetite.

• Stability of the Pakistani Rupee against the US Dollar.

• Attractive valuations encouraging long-term investors.

• Continued government focus on economic stability and reforms.

• Positive earnings expectations in selected non-banking sectors.

Challenges Affecting the Market

The overall market remained under pressure due to several macroeconomic concerns:

• Rising geopolitical tensions.

• Uncertainty regarding the IMF review and fiscal reforms.

• High interest rates impacting economic activity.

• Weak corporate earnings outlook in certain industries.

• Volatility in global commodity prices.

Overall Market Analysis (Excluding Banking Sector)

Excluding the banking sector, the market witnessed a mixed performance during the second week of July. Although the broader market remained under selling pressure, Power, Cement, Technology, Oil & Gas E&P, and Pharmaceuticals showed resilience and continued to attract selective buying. Meanwhile, Automobiles, Textiles, OMCs, and Fertilizer experienced moderate declines as investors reduced exposure to sectors more vulnerable to economic uncertainty.

The overall sentiment in Shariah-compliant non-banking sectors remained relatively in a bearish sentiment. The decline appears to be driven more by cautious investor sentiment and short-term profit-taking rather than a deterioration in business fundamentals. If macroeconomic conditions improve and investor confidence returns, these sectors are well-positioned to recover and regain positive momentum in the coming weeks.