Weekly Market Roundup

February 28, 2026 (MLN): Pakistan’s equity market remained under sustained pressure during the outgoing week, as the benchmark KSE-100 Index closed at 168,062.17, down from 173,169.71 recorded on February 20, 2026.

The index shed 5,107.54 points over the week, translating into a decline of 2.95% week-on-week (WoW), as persistent selling in heavyweight sectors kept the market firmly in bearish territory.

Investor sentiment remained subdued as the IMF review approaches, with market participants opting to trim positions amid uncertainty over potential policy adjustments and fiscal targets.

The upcoming review is seen as a critical milestone for economic stability, prompting cautious trading activity.

Market Capitalization

Market capitalization moved in tandem with the index. The total listed market cap declined to Rs4.96 trillion on February 27, 2026, compared to Rs5.11tr a week earlier, marked a contraction of approximately Rs152.2bn or 2.98% WoW.

The erosion in value shows broad-based declines across large-cap sectors.

In dollar terms, total market capitalization fell to $17.73bn from $18.27bn last week, representing a 2.95% weekly drop in USD valuation.

Dollar-adjusted returns stood at negative 2.92%, compared to negative 3.56% in the prior week. While the pace of decline moderated slightly in foreign currency terms, returns remained firmly negative, underscoring continued pressure on equity prices rather than currency-driven weakness.

On the macroeconomic front, Pakistan’s broad money supply stands at Rs46.19tr in January 2026, down 0.73% MoM but up 15.08% YoY, as per data from the State Bank of Pakistan.

The State Bank of Pakistan purchased $620m from the interbank market in November 2025, taking total FY26 (Jul–Nov) net FX buying to $3.12bn, though inflows moderated compared to last year.

Pakistan’s weekly SPI inflation fell 0.54% WoW for the week ended Feb 26, 2026, while rising 4.23% YoY, according to the Pakistan Bureau of Statistics.

Index Movers

Sector-wise performance confirmed that selling pressure was systemic. Commercial banks emerged as the largest drag, wiping out 1,782.63 index points amid heavy volumes.

Oil and gas exploration companies followed with a loss of 728.63 points, while cement stocks erased 648.63 points.

Technology and communication shaved off 333.54 points, pharmaceuticals reduced the index by 310.75 points, and investment banks and securities companies trimmed 258.78 points.

Oil and gas marketing companies, food and personal care products, automobile assemblers, power generation firms, engineering, transport, and several other sectors also contributed negatively, reinforcing the broad-based nature of the decline.

On the positive side, gains were limited and concentrated in a few pockets.

Textile composite stocks added 55.36 points, automobile parts and accessories contributed 48.69 points, fertilizer added 40.70 points, and refineries and vanaspati producers provided marginal support.

However, these gains were insufficient to offset heavy losses in banking, exploration, cement, and technology heavyweights.

At the company level, a handful of stocks managed to post positive contributions, including BAFL, POL, AKBL, FATIMA, EFERT, and THALL, along with select textile composite names.

Nevertheless, losses among major index constituents dominated overall performance. UBL alone erased 1,193.90 points, while MARI shed 484.81 points and MEBL lost 331.09 points.

Technology leader SYS declined by 236.65 points, while PPL and OGDC weighed heavily on the exploration segment.

HBL recorded a 230.09-point decline, and cement majors LUCK and MLCF also posted substantial losses. The scale of declines in large-cap stocks indicates institutional-level repositioning rather than retail-driven volatility.

FIPI/LIPI

Foreign investment flows continued to exert pressure on the market.

Under Foreign Portfolio Investment (FIPI), foreign investors remained net sellers with a total outflow of $17.28m during the week.

The bulk of the selling came from foreign corporates, which offloaded $18.29m worth of equities, while overseas Pakistanis and foreign individuals provided only marginal buying support.

Local investors absorbed the entire foreign outflow, resulting in a matching net inflow of $17.28m under Local Portfolio Investment (LIPI).

Banks and DFIs emerged as the largest buyers with net purchases of $33.88m, followed by companies and other organizations.

On the selling side, individuals, mutual funds, insurance companies, and broker proprietary desks recorded net sales.

The flow dynamics suggest that domestic institutional liquidity provided critical support, preventing a sharper market slide despite continued foreign exits.

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