Karachi, February 28, 2026: The KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a steep weekly decline, shedding 5,108 points to close at 168,062 points for the week ending February 27, 2026. Analysts cite persistent selling pressure, geopolitical tensions, and cross-border uncertainties as key drivers behind the market slump.
Geopolitical Concerns Weigh on Markets
The global scenario shifted dramatically on February 28, when Israel launched attacks on Iran and Tehran responded, escalating tensions in the Middle East. Financial experts warn that this deteriorating security situation could influence Pakistani markets and global financial stability in the week starting March 2, 2026.
Corporate Earnings Provide Mixed Signals
During the week, 69 companies representing 83% of the KSE-100 index’s market capitalization announced their 2025 financial results. Combined profits reached PKR 1.6 trillion, reflecting 5.9% year-on-year growth. Key sectors contributing to profitability included investment banking, auto assemblers, textiles, and miscellaneous industries, posting YoY growth of 50%, 44%, 31%, and 36%, respectively.
Economic Indicators
Energy production showed a slight decline, with gas output falling 4.4% to 2,688 mmcfd and oil production dropping 3% to 60,888 bopd. The State Bank of Pakistan (SBP) reported liquid foreign exchange reserves at USD 16.2 billion, an increase of USD 16 million. The Pakistani rupee remained largely stable, marginally strengthening by 0.02% WoW to PKR 279.501/USD.
Outlook for the Coming Week
Market analysts say that the KSE-100’s performance in the upcoming week will heavily depend on the evolving Middle East situation and IMF review outcomes. A potential de-escalation in tensions and positive IMF developments could act as key sentiment drivers, potentially supporting a market rebound.
Investors are advised to monitor geopolitical developments, macroeconomic indicators, and corporate earnings closely as the market navigates this volatile period.