Karachi: The KSE-100 Index continued its downward trend for the third consecutive week, closing at 171,000 points, a decline of 2.7% compared to the previous week. This decline comes amid escalating geopolitical tensions, which have affected investor confidence.

According to JS Global, the situation was further exacerbated after the Houthis announced a blockade in the Red Sea, resulting in Brent crude prices surpassing $100 per barrel for the first time in nearly two months. On the macroeconomic front, S&P Global upgraded Pakistan's sovereign credit rating from 'B-' to 'B', citing enhanced institutional stability and the effective implementation of reforms backed by the International Monetary Fund.

Domestically, the Oil and Gas Regulatory Authority (OGRA) shifted to a daily petroleum price adjustment mechanism starting Monday. This resulted in cumulative increases over the week of Rs15.37 per liter (4.9%) for Motor Spirit and Rs24.31 per liter (6.9%) for High-Speed Diesel. Furthermore, Pakistan secured $16.2 billion in external financing during the fiscal year 2026, while the government is reportedly seeking an additional $10 billion support facility from the United States to bolster foreign exchange reserves and strengthen macroeconomic stability.

In the latest Treasury bill auction, the government raised Rs768 billion against a target of Rs800 billion, with cut-off yields rising by up to 50 basis points across longer maturities. Meanwhile, the State Bank of Pakistan's foreign exchange reserves remained stable on a weekly basis at $17.3 billion.