The PSX benchmark rose 0.5% in August 2026 after a 3% first-week jump on Hormuz-reopening hopes; later geopolitics and domestic politics erased most of that despite solid earnings and Arab Light −4% MoM. Volume held at 1.1bn shares/day; value rose 5.5% to $184m (individuals/companies/mutuals bought; banks and foreign corporates sold).

Near-term drivers: IMF review, brownfield refinery policy, DISCO privatization, gas circular debt and a pending gas-price hike; renewed U.S.–Iran strikes and grain-price pressure from Russia–Ukraine could lift CPI and the external gap.

Intermarket stays constructive: 7.4× forward P/E vs. 8.1× long-run average; September has averaged 2% over 20 years. Favored names: BAFL, BAHL, OGDC, MARI, APL, MLCF, DGKC, KOHC, FFC, SYS.

The benchmark index of Pakistan Stock Exchange (PSX) edged up 0.5%MoM in August 2026, supported by a strong first week (up 3.0%) on positive news flow around a potential reopening of the Strait of Hormuz. However, renewed geopolitical uncertainty thereafter, alongside rising domestic political noise, weighed on sentiment and largely........

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