Pakistan markets today

The week's most eye-catching domestic development is the sharp reduction in petrol prices, with MS dropping from Rs 373.78 to Rs 299.50, a cut of Rs 74.28 per litre. That magnitude of relief will feed directly into transport costs and secondary inflation, and the SPI holding flat at 14.47 percent year-on-year suggests broader price pressures have not yet unwound. The rupee edged marginally stronger, moving from 278.00 to 277.70 against the dollar, which provides a thin cushion on the import bill. Watch whether the petrol price cut triggers a visible dip in the SPI reading over the coming fortnightly cycle.

The KSE-100 slipped 1,156 points over the week to close at 178,415, a decline of 0.64 percent, with broader selling pressure visible across all headline indices. The KMI-30 was the hardest hit among the major benchmarks, falling 0.98 percent, while the Oil and Gas sector index dropped 1.14 percent, likely reflecting the domestic petrol price revision compressing refining and marketing margins. Banks lost 0.60 percent and the consumer sector shed 0.67 percent, suggesting the retreat was broad rather than sector-specific. The JS Momentum index falling 1.13 percent signals that high-beta positioning is being trimmed, so watch for whether institutional flows return once the macro picture on interest rates becomes clearer.

Brent crude gained 2.89 percent over the week to close at 74.07 dollars per barrel, while WTI rose 2.47 percent to 70.94 dollars, a moderate tightening that will complicate Pakistan's import bill planning heading into the next pricing cycle. The Dubai Platts figure, which is the more relevant benchmark for Pakistan's crude basket, posted a striking decline of 22.9 percent from 103.15 to 79.52 dollars, a divergence from Brent that warrants scrutiny and may reflect data or methodology differences rather than a clean market move. Gold pulled back 1.06 percent to 4,036 dollars per ounce while silver slipped 0.92 percent to 58.67 dollars, easing some pressure on local jewellery demand. Natural gas softened to 3.19 dollars per MMBtu, and the direction of that benchmark will matter for Pakistan's LNG procurement costs in the months ahead.

Global equities delivered a constructive week, with the S&P 500 rising 1.09 percent to 7,434 and the Dow Jones closing at 52,258, signalling that risk appetite in developed markets remains firm despite ongoing macro uncertainty. Asian markets showed considerable divergence, with the Nikkei 225 closing at 69,361 and the Hang Seng at 22,672, reflecting differing domestic growth narratives across the region. On currencies, the EUR/USD slipped 0.74 percent from 1.1480 to 1.1395, while the rupee held remarkably stable at 277.92 against the dollar, providing a degree of predictability for importers pricing contracts. The relative calm in USD/PKR is a positive signal for the State Bank's reserve management, but any renewed dollar strength globally would quickly test that stability.