Global turmoil weighs on Pakistan market, resilience holds

April 23, 2026 (MLN): Pakistan’s capital market demonstrated notable resilience in the third quarter of FY26, weathering a turbulent global environment marked by geopolitical tensions, rising oil prices, and widespread risk aversion.

Global markets came under pressure amid the US-Iran conflict, which drove Brent crude prices up by 10–13% in the early days of the war.

Major international indices also declined, with the S&P 500 falling 4.3%, MSCI Europe ex-UK down 3.2%, MSCI Asia slipping 1.1%, and MSCI Emerging Markets edging lower by 0.1%, according to the latest quarterly review issued by the Securities and Exchange Commission of Pakistan, said a press release issued.

Against this backdrop, Pakistan’s benchmark KSE-100 Index recorded a decline of 14.54% during the quarter.

The index began the period at 174,054 points, climbed to an all-time high of 191,033 on January 26, and later closed at 148,743 on March 31.

The intra-quarter low of 144,119 on March 19 reflected a peak-to-trough drop of 22.57%. Broader indices also mirrored the downturn, with the KSE All Share Index falling 14.85% and the KSE-30 Index declining 15.52%.

Market sentiment remained positive in January, when the KSE-100 gained 5.81%.

However, concerns over rising costs, geopolitical uncertainty, and profit-taking weighed on investor confidence in February, leading to a 3.75% decline. The correction intensified in March, with the index dropping 11.50%.

Despite the decline in prices, trading activity remained robust. Market capitalisation decreased by RS3.15 trillion to RS16.53 trillion.

Total traded volume reached 48.8bn shares, while traded value stood at RS2.68 trillion. Average daily volume and value were recorded at 791.7m shares and RS44.03bn, respectively, with around 485 stocks actively traded per session.

Domestic investors played a crucial role in stabilising the market. While foreign investors posted net outflows of RS111.61bn driven largely by foreign corporates selling RS117.07bn local participants offset the pressure with net buying of RS111.55bn.

Companies led the inflows with RS73.51bn, followed by mutual funds and individual investors.

Trading activity remained concentrated in blue-chip stocks. National Bank of Pakistan led in traded value at RS182.42bn, followed by Pakistan Petroleum Limited, Oil and Gas Development Company, Fauji Fertilizer Company, and Habib Bank Limited.

In terms of volume, K-Electric topped the list, followed by the Bank of Punjab and WorldCall Telecom.

Primary market activity also remained steady, with the SECP approving three initial public offerings during the quarter. In the debt market, the government conducted three auctions of Ijara Sukuk with a cumulative target of RS800bn.

Total bids reached RS2.03 trillion, reflecting a strong bid-to-cover ratio of 2.54 times, while RS811.53bn was accepted.

Secondary market activity in debt instruments remained active as well. Government Ijara Sukuk worth RS185.14bn were traded across 2,062 transactions, while trading on the Pakistan Stock Exchange’s bills and bonds counter reached RS260.94bn.

Additionally, two privately placed corporate sukuk were listed during the period.

The SECP described the quarter as exceptionally challenging but noted that the market showed considerable resilience.

Strong participation from domestic investors, sustained IPO activity, an active debt market, and ongoing regulatory reforms helped maintain stability and reinforced confidence in the long-term outlook of Pakistan’s capital markets.

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