KARACHI: Despite persistent volatility, the Pakistan Stock Exchange (PSX) closed higher on Friday for the third consecutive session, keeping the benchmark index in positive territory. However, regional and political turmoil continued to weigh on investor sentiment, while the economic outlook remained uncertain.
Topline Securities Ltd said the market traded range-bound, with the index moving both ways before closing at 166,419.72, up 233.55 points or 0.14 per cent. This was attributed to a lack of triggers and elevated crude oil prices.
Systems Ltd, United Bank, MCB Bank, Bank Al-Habib, and Engro Fertiliser collectively contributed 269 points to the index. Conversely, Oil and Gas Development Company, Lucky Cement, Meezan Bank, Pakistan Telecommunication Company, and Engro Holdings wiped out 223 points.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX remained volatile, moving in both directions amid cautious investor sentiment, driven by geopolitical uncertainty and position-squaring ahead of the weekend.
The index staged a partial recovery, touching an intraday high of 166,708 before giving up some of its gains.
On the macroeconomic front, Pakistan recorded a current account deficit of $356m in September, compared with a surplus of $133m in September 2025 and a deficit of $73m in August.
This pushed the 1QFY27 deficit to $874m, up from $755m in the same period last year. Meanwhile, the Real Effective Exchange Rate rose to 108.93 in September from 107.87 in August, marking its highest level since May 2018.
On the corporate front, UBL reported a profit after tax of Rs30.6bn in 3QCY26 (earnings per share of Rs12.24), down 13pc year on year and 18pc quarter on quarter. However, 9MCY26 earnings rose 16pc year on year to Rs117bn (EPS: Rs46.5). The bank announced a quarterly dividend of Rs8 per share, taking its cumulative 9MCY26 payout to Rs24 per share.
Market participation weakened sharply, reflecting investor caution, as trading volume fell well below the 500-million mark, tumbling 23.31pc to 396.9 million shares. Total turnover dipped 20.75pc to Rs18.6bn. Pakistan Refinery topped the volume chart with 38.4 million shares.
Analysts expect the market to remain volatile and range-bound between 164,000 and 168,000 amid cautious investor sentiment and evolving macroeconomic and geopolitical developments.
Published in Dawn, October 17th, 2026
