6 Stocks Rescue PSX in April After US-Iran Ceasefire and Severe Energy Crisis

The KSE-100 Index staged a strong rebound in April 2026, gaining 14,251 points on a month-on-month basis. However, investor sentiment remained highly volatile throughout the month.

According to Arif Habib Limited, the initial rally was driven by optimism surrounding a potential US–Iran ceasefire, which triggered sharp gains in early trading sessions.

Momentum later weakened as the month progressed, with volatility returning amid weaker-than-expected corporate earnings and renewed geopolitical uncertainty.

During April 2026, average traded volume surged by 91 percent to 929 million shares, while average traded value increased significantly by 49 percent to USD 148 million.

The KSE-100 Index posted a positive return of 9.6 percent, closing at 162,994 points.

On the macroeconomic front, CPI inflation for March 2026 rose to 7.3 percent year-on-year, the highest level since August 2024, compared to 7.0 percent in February. Pakistan also posted a current account surplus of USD 1.07 billion in March 2026, up sharply from USD 231 million in February, bringing the 9MFY26 balance to a surplus of USD 8 million.

During the month, the State Bank of Pakistan increased the policy rate by 100 basis points, taking the effective rate to 11.5 percent.

In the PIB auction, the government rejected bids across all tenors as yields continued to rise. In the T-Bill auction, yields increased by 40 to 80 basis points across tenors, with most acceptance concentrated in the one-month maturity.

Fitch maintained Pakistan’s sovereign credit rating at B- with a stable outlook. Meanwhile, the World Bank reclassified Pakistan from its South Asia grouping to the MENAAP region, which includes the Middle East, North Africa, Afghanistan, and Pakistan. The change will take effect from fiscal year 2026.

On the external financing side, Pakistan received the final $1 billion tranche under Saudi Arabia’s $3 billion support package. It also repaid $3.45 billion to the United Arab Emirates against maturing deposits. Additionally, the country raised further funds by exercising the greenshoe option, increasing its Eurobond issuance to $750 million.

Sector-wise developments showed mixed trends across the economy. Refinery upliftment rose 13 percent year-on-year, led by increases in HSD (26.8 percent) and MS (25.1 percent). Petroleum sales grew 19 percent year-on-year to 1.44 million tons in March 2026, driven by higher volumes in HSD, MS, and FO, taking 9MFY26 sales up 5 percent.

Cement dispatches increased slightly by 0.9 percent year-on-year to 3.74 million tons in March, supported mainly by exports despite weak domestic demand. On a cumulative basis, 9MFY26 dispatches rose 9.8 percent year-on-year.

Power generation increased 6 percent year-on-year to 8,939 GWh in March 2026, while generation cost declined 15 percent to Rs. 8.08 per kWh, keeping fuel cost adjustments at a low Rs. 0.27 per kWh.

Automobile sales surged 40 percent year-on-year to 15,500 units in March, although they declined 9 percent month-on-month. For 9MFY26, auto sales rose 43 percent year-on-year to 144,000 units.

Technology exports increased 20 percent year-on-year and 13 percent month-on-month to USD 413 million, accounting for 46 percent of total services exports.

In the energy sector, OGDC announced a major discovery at Baragzai X-01, adding approximately 5,300 barrels per day of oil and 17 million cubic feet per day of gas. This raised cumulative output to around 15,000 barrels per day of oil and 45 million cubic feet per day of gas.