Karachi, March 28, 2026 – The benchmark KSE-100 Index of Pakistan Stock Exchange (PSX) recorded a weekly decline of 1,033 points, reflecting heightened volatility in the local equity market. The index closed at 151,708 points for the week ended March 27, 2026, down 0.68% week-on-week, according to market insights shared by Arif Habib Limited.
Analysts attributed the bearish trend to persistent geopolitical tensions that have weighed heavily on investor sentiment. As the ongoing conflict enters its fourth week, uncertainty in global markets has triggered cautious trading behavior, resulting in sustained selling pressure across key sectors of the Pakistan Stock Exchange.
Despite the market downturn, Pakistan has positioned itself as a constructive diplomatic player, offering mediation efforts aimed at fostering dialogue and promoting regional stability. This development has been viewed positively in the broader macroeconomic context, though its immediate impact on equities remains limited.
A key development during the week was progress in negotiations with the International Monetary Fund (IMF), which shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities. The move signals advancement toward a Staff-Level Agreement (SLA) under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), pending final agreement on policy measures.
Meanwhile, global shipping disruptions in the Arab Gulf have slightly benefited Pakistan’s port activity, with increased transshipment volumes being routed through local terminals. This trend has provided some support to logistics and port-related stocks.
On the fiscal side, the government raised Rs503.1 billion through Pakistan Investment Bonds (PIBs), exceeding its target of Rs400 billion. However, cut-off yields rose sharply by 90 to 225 basis points across tenors, indicating tightening liquidity conditions and investor demand for higher returns. A significant portion of the funds—Rs327.9 billion—was raised through 15-year bonds.
The exploration and production (E&P) sector emerged as a bright spot during the week, supported by new oil and gas discoveries at wells including Shams-1, Sahito-1, Bilitang-1, and Pasakhi-13. These developments helped cushion broader market losses.
Additionally, Pakistan National Shipping Corporation (PNSC) contributed Rs4 billion to the Prime Minister’s Austerity Fund 2026, reinforcing its commitment to corporate social responsibility.
In the mining sector, Barrick Mining announced a slower pace of development at the Reko Diq project due to evolving regional security conditions.
The Pakistani rupee remained largely stable, appreciating marginally by 0.02% to close at 279.17 against the US dollar.
Looking ahead, analysts expect the market’s direction to remain closely tied to geopolitical developments and upcoming inflation data for March 2026. Currently, the KSE-100 Index trades at a price-to-earnings ratio of 7.5x, offering an attractive dividend yield of approximately 6.8%, which may continue to draw long-term investors despite short-term volatility.