Weekly Market Roundup

May 01, 2026 (MLN): Pakistan’s equity market extended its decline during the week ended May 01, 2026, with the benchmark KSE-100 Index closing at 162,994.17, down sharply from 170,672.04 recorded on April 24, 2026.

The index plunged 7,677.87 points, translating into a 4.50% week-on-week (WoW) decline, marking an acceleration in selling pressure after the previous week’s correction.

Investor sentiment is likely to remain sensitive to geopolitical tensions and developments in global risk appetite, which may continue to drive volatility in the market.

Market Capitalization

Total market capitalization declined significantly in line with the index performance. As of May 01, 2026, market cap stood at Rs4.695 trillion, compared to Rs4.923tr on April 24, 2026, marking a decrease of Rs228.25bn or 4.64% WoW.

In USD terms, market capitalization fell to $16.84bn from $17.65bn in the previous week, reflecting a notable erosion in overall market value.

Dollar-adjusted returns remained firmly negative, clocking in at -4.47% WoW, compared to -1.85% in the prior week, indicating a sharp deterioration in investor returns in both local and foreign currency terms amid intensified market correction.

On the macroeconomic front, the State Bank of Pakistan raised Rs1.37tr through its Market Treasury Bills auction on April 30, 2026, driven by strong demand across short-term tenors.

However, it rejected all bids in the 10-year floating-rate Pakistan Investment Bond auction, resulting in zero mobilization from the long-term instrument.

Pakistan’s total money supply rose to Rs47.69tr in March 2026, showing a 2.2% MoM and 13.57% YoY increase, driven mainly by higher currency in circulation and deposit growth.

The uptick highlights continued cash demand amid inflationary pressures, with currency in circulation posting a notable 16.29% annual rise.

The State Bank of Pakistan purchased $728m from the interbank market in January 2026, lower than December’s $1.02bn but significantly higher than $154m a year ago, showing improved inflow conditions despite a slight monthly moderation.

The State Bank of Pakistan raised its policy rate by 100 basis points to 11.5% in April 2026, marking the first increase in nearly three years, as rising inflation and higher fuel prices worsened the inflation outlook.

The move reflects a shift toward tighter monetary policy, with the MPC aiming to anchor inflation expectations amid geopolitical risks, fiscal pressures, and mounting external uncertainties.

Index Movers

Sector-wise, the decline remained heavily concentrated in index-heavy sectors.

Commercial banks emerged as the largest drag, shaving off 2,576.60 points, followed by oil & gas exploration companies (-1,272.13 points), highlighting pressure on major index drivers.

Cement contributed a decline of 782.71 points, while fertilizer (-684.36 points) and oil & gas marketing companies (-368.93 points) further weighed on the benchmark.

Technology & communication (-337.05 points) and power generation & distribution (-320.10 points) also remained under pressure, reflecting widespread selling across cyclical and growth sectors.

Other notable negative contributors included investment banks/securities (-304.21 points), pharmaceuticals (-246.92 points), and property (-103.58 points), reinforcing the broad-based nature of the downturn.

On the positive side, limited support came from tobacco (+21.13 points) and automobile assemblers (+19.42 points), along with marginal contributions from sugar and modarabas, indicating selective resilience in a weak market.

Scrip-wise, the downside was dominated by heavyweights.

United Bank Limited led the decline, dragging the index by 1,066.79 points, followed by National Bank of Pakistan (-663.04 points) and Pakistan Petroleum Limited (-589.15 points).

Other major laggards included Fauji Fertilizer Company (-562.54 points), Oil and Gas Development Company (-508.75 points), and Lucky Cement (-339.45 points).

Additional pressure came from Pakistan State Oil, Engro Holdings, Hub Power Company, Habib Bank Limited, Mari Petroleum Company, and MCB Bank Limited, reflecting heavy selling in banking, energy, and cement stocks.

On the upside, gains remained limited and largely concentrated in automobile names, with Indus Motor Company leading the pack (+64.61 points), followed by Honda Atlas Cars and Millat Tractors.

Other contributors included Pakistan Tobacco Company, Pakistan Oilfields Limited, and Attock Petroleum Limited, highlighting selective buying in defensive and auto segments.

FIPI / LIPI

Foreign investment flows showed a modest net inflow during the week.

Under Foreign Institutional Portfolio Investment (FIPI), overseas Pakistanis remained the key buyers with a net inflow of Rs1.36bn ($4.86m).

However, foreign corporates were net sellers, recording an outflow of Rs757.40m ($2.71m), while foreign individuals posted a marginal inflow of Rs0.14m.

Overall, FIPI recorded a net inflow of Rs598.42m ($2.14m), indicating slight foreign support despite broader market weakness.

On the domestic side, Local Portfolio Investment (LIPI) activity remained mixed.

Individuals emerged as the largest buyers with a strong net inflow of Rs7.65bn, followed by companies (+Rs398.93m) and banks & DFIs (+Rs326.39m), providing liquidity support to the market.

On the flip side, mutual funds led the selling with a significant net outflow of Rs7.97bn, while broker proprietary trading (-Rs876.26m) and insurance companies (-Rs176.11m) also contributed to the selling pressure.

Other participants remained largely neutral, indicating a cautious stance across institutional investors.

In the debt market, activity remained relatively subdued, with individuals showing net inflows, while mutual funds recorded outflows, reflecting selective reallocation across asset classes.

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