KARACHI, April 23, 2026 – Pakistan’s equity market demonstrated notable resilience during the third quarter of FY2025-26 despite global financial turbulence triggered by the US-Iran conflict, according to a quarterly review released by the Securities and Exchange Commission of Pakistan (SECP).
The report said the geopolitical crisis drove volatility across global markets, pushing Brent crude prices up by 10–13% in the early phase of the conflict, while major international indices recorded declines. The S&P 500 fell 4.3%, MSCI Europe ex-UK dropped 3.2%, MSCI Asia slipped 1.1%, and MSCI Emerging Markets edged down 0.1%.
Against this backdrop, Pakistan’s benchmark KSE-100 Index declined 14.54% during the quarter. However, the SECP noted that strong domestic investor participation, continued activity in the primary market and regulatory reforms helped maintain overall market stability.
The KSE-100 began the quarter at 174,054 points and climbed to an all-time high of 191,033 on January 26 before reversing course amid mounting global and domestic pressures. The index eventually closed at 148,743 on March 31, after touching an intra-quarter low of 144,119 on March 19—representing a peak-to-trough decline of 22.57%.
Market sentiment remained positive in January, with the index gaining 5.81%. However, rising geopolitical tensions, higher energy costs and profit-taking weighed on investor confidence in February and March, leading to declines of 3.75% and 11.50%, respectively.
Despite the downturn, trading activity remained robust. Total market capitalisation fell by PKR 3.15 trillion to PKR 16.53 trillion, while total traded volume reached 48.8 billion shares and traded value stood at PKR 2.68 trillion. Average daily volumes were recorded at 791.7 million shares.
Domestic investors played a key stabilising role during the quarter. While foreign investors recorded net outflows of PKR 111.61 billion, local participants—including companies, mutual funds and individuals—absorbed the selling with net buying of PKR 111.55 billion.
Blue-chip stocks dominated trading activity, with National Bank of Pakistan leading by value, followed by Pakistan Petroleum Limited, Oil and Gas Development Company Limited, Fauji Fertilizer Company and Habib Bank Limited.
Primary market activity remained steady, with three initial public offerings approved during the quarter. On the debt side, strong demand was seen in government sukuk auctions, with bids significantly exceeding targets.
The SECP said that despite a challenging global environment, Pakistan’s capital market showed durability, supported by strong domestic participation, active debt markets and ongoing reforms—factors that are expected to strengthen long-term investor confidence.