Pakistan's benchmark KSE-100 index fell 2,610 points, or 1.5%, over the week to close at 168,155, as geopolitical uncertainty, high oil prices and stalled US-Iran negotiations kept investors cautious, The Express Tribune reported on October 4.

The drop pushed the main index of the Pakistan Stock Exchange (PSX) below the 170,000 level and left it there for September's close. Investors were weighing regional tensions, including the conflict between Saudi Arabia and Yemen's Houthis, against mixed domestic data and the government's ongoing talks with the International Monetary Fund (IMF).

Trading thinned during the week. Average daily volume fell 22% week-on-week to 525mn shares, and traded value dropped 17% to PKR18.7bn ($67.5mn).

The index lost 340 points on September 28 to settle at 170,426. It shed another 825 points the next day to close at 169,600, its first finish below 170,000 in seven trading sessions. A 369-point gain on September 30 lifted it to 169,969, still short of that level. A volatile session on October 1 brought a 1,332-point fall to 168,636. The index lost a further 481 points on October 2.

Brokerage Arif Habib Limited (AHL) said the Saudi-Houthi conflict had dampened hopes for successful negotiations. A widening trade deficit and higher treasury bill yields also weighed on sentiment, though consumer price inflation eased to 10.3% year-on-year in September from 11.1% in August.

At the latest treasury bill auction the government raised PKR880bn, with yields rising by 49.5 to 75 basis points across all tenors. The three-month paper accounted for PKR480bn.

The Federal Board of Revenue collected PKR1,344bn in September, up 9% year-on-year and PKR1bn above target. Quarterly collection reached PKR3,066bn, up 7% and PKR13bn above target.

Liquid foreign exchange reserves stood at $26.8bn as of October 1. The State Bank held $21.4bn of that, enough for 3.04 months of imports.

Crude and petroleum imports rose 21% year-on-year in August, driven by a 55% jump in crude. Fuel marketing company sales slipped 2% year-on-year in September to 1.35mn tonnes amid higher prices. The rupee firmed 0.03% to PKR277.07 per dollar.

KSE-100 company profits hit a record PKR2,031bn in FY26, up 18%, led by banks and exploration firms.