The Pakistan Stock Exchange closed higher on Friday after a highly volatile trading session, with the benchmark KSE-100 Index gaining 574.76 points as investors responded to developments in the domestic refinery sector, inflation data and continued movements in international markets.
The KSE-100 Index settled at 177,166.52 points at the close, marking an increase of 574.76 points, or 0.33 percent, from the previous session. The market experienced significant swings during the day, with the benchmark initially recording strong gains before falling into negative territory and later recovering during the second half of trading.
According to data available on the Pakistan Stock Exchange website, the market opened on a positive note and the benchmark index advanced by more than 800 points during the early part of the session. The KSE-100 reached an intraday high of 177,528.00 points before the early gains were reversed.
Selling pressure subsequently pushed the index into negative territory, with the benchmark losing more than 400 points by around 11:10am. Trading then remained relatively subdued for a period before buying interest returned during the second half of the session. The recovery enabled the index to end the day firmly in positive territory.
Market performance remained mixed across major sectors. Commercial banks, engineering companies and several other stocks came under selling pressure during the session, limiting the broader market’s gains. At the same time, refinery stocks recorded stronger performance following developments concerning long-delayed refinery upgrade projects.
Refinery shares were supported by news that the government is preparing to sign agreements with refineries within the next seven to 10 days. Petroleum Minister Ali Pervaiz Malik announced that the government was moving ahead with the agreements as part of efforts to advance refinery upgrades that have remained delayed for an extended period.
The expected agreements provided fresh buying interest in refinery stocks as investors assessed the potential implications for companies operating in the sector. The refinery upgrade programme has remained an important part of Pakistan’s energy-sector discussions, particularly in relation to modernising domestic refining capacity.
Meanwhile, inflation data released during the session showed that the Sensitive Price Index increased by 0.49 percent week-on-week for the week ended August 20, 2026. On a year-on-year basis, the SPI recorded an increase of 9.66 percent.
The latest inflation reading came against a backdrop of continued movements in international energy markets. Oil prices remained elevated as concerns over disruptions to Middle Eastern oil supplies continued to influence global markets.
The previous trading session had also been marked by volatility. On Thursday, the KSE-100 Index declined by 254.59 points, or 0.14 percent, to close at 176,591.77 points. Renewed geopolitical uncertainty and higher international oil prices contributed to cautious investor sentiment, while selling in heavyweight stocks outweighed selective buying. Global equity markets also remained unsettled during Friday’s trading. World stocks were heading toward their sharpest weekly decline since mid-July, with continued pressure in global bond markets adding to investor concerns. Developments in the Gulf and elevated oil prices also kept inflation expectations under scrutiny.
In Asia, Japan’s Nikkei index declined 0.3 percent, extending its weekly loss to nearly 4 percent and putting it on track for its weakest week since mid-July. South Korean and Taiwanese equities moved slightly higher during the day but remained lower on a weekly basis. European markets opened with gains, although the STOXX 600 remained on course for its steepest weekly decline since early July, with losses of around 1 percent during the week. MSCI’s world stock index was similarly positioned for its largest weekly decline since mid-July.
US markets received some support from a strong corporate earnings season. S&P 500 futures were up 0.25 percent, while Nasdaq futures gained 0.5 percent during Friday trading. Oil prices edged lower during the session but remained on course for a second consecutive weekly gain. Brent crude futures declined 17 cents, or 0.18 percent, to $93.61 per barrel by 0802 GMT, while US West Texas Intermediate crude futures fell 36 cents, or 0.41 percent, to $86.47 per barrel.
Despite the daily declines, Brent was up more than 5.8 percent for the week, while WTI had gained 4.8 percent. Both benchmarks had reached their highest levels since July 24 during the previous session. The movement in oil prices has been linked to concerns over continued restrictions on supplies from major oil-producing countries, including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait. US Treasury chief Scott Bessent had also threatened what he described as the toughest sanctions in history, adding another source of uncertainty for global energy markets.
The earlier peace agreement between the United States and Iran expired during the week, with no immediate effort from either side to resume negotiations. The uncertainty surrounding oil flows and wider geopolitical developments continued to influence international markets and remained an important consideration for investors in Pakistan and abroad. Against this backdrop, the PSX’s 574-point recovery reflected a strong rebound after the previous session’s decline and the sharp intraday swings seen during Friday’s trading.
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