Weekly Market Roundup

May 16, 2026 (MLN): Pakistan’s equity market witnessed a sharp correction during the week ended May 15, 2026, with the benchmark KSE-100 Index closing at 165,596.07, significantly lower than 171,115.82 recorded on May 08, 2026.

The index declined by 5,519.74 points, translating into a 3.23% week-on-week (WoW) loss, as investors stayed largely cautious and refrained from active participation due to rising oil prices and ongoing geopolitical uncertainties.

Market Capitalization

Total market capitalization declined in line with the benchmark index performance. As of May 15, 2026, market capitalization stood at Rs4.737 trillion, compared to Rs4.906tr on May 08, 2026, marking a decrease of Rs168.60bn or 3.44% WoW.

In USD terms, market capitalization fell to $17.00bn from $17.60bn in the previous week, reflecting erosion in overall market value amid broad-based selling pressure.

Dollar-adjusted returns also turned negative, clocking in at negative 3.19% WoW, compared to positive 5.01% in the prior week, indicating weakening investor returns in both local and foreign currency terms.

On the macroeconomic front, Pakistan’s National Savings Schemes recorded net inflows of Rs22.88bn in March 2026, up 10.6% from February, signaling continued recovery in saver confidence amid improving returns.

Pakistan’s external debt and liabilities stood at $137.56bn by the end of Q3FY26, declining 0.34% QoQ but rising 5.73% YoY, according to State Bank of Pakistan data.

Pakistan’s central government debt rose 9.28% YoY to Rs80.52tr in March 2026, driven by higher domestic and external borrowing to finance the fiscal deficit.

Pakistan’s auto sales more than doubled in April 2026, surging 106.9% YoY to 22,015 units, driven by strong demand across passenger cars, SUVs, and tractors amid improving consumer confidence and economic activity.

Pakistan’s workers’ remittances fell 7.6% MoM to $3.54bn in April 2026 amid Middle East tensions, though inflows remained 11.4% higher YoY, keeping cumulative 10MFY26 remittances at $33.86bn.

Index Movers

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

Commercial banks emerged as the largest drag on the benchmark index, wiping out 2,492.07 points amid heavy selling pressure in major banking names and profit-taking across the sector.

Cement stocks trimmed 845.62 points from the index, while investment banks/investment companies/securities companies erased 583.33 points during the week.

Fertilizer dragged the benchmark by 409.62 points, followed by power generation & distribution (-226.94 points), pharmaceuticals (-184.87 points), oil & gas exploration companies (-172.65 points), and oil & gas marketing companies (-162.38 points).

Additional negative contributions came from textile composite (-110.26 points), insurance (-71.74 points), technology & communication (-63.91 points), automobile assemblers (-44.22 points), automobile parts & accessories (-43.27 points), cable & electrical goods (-42.26 points), and property (-32.14 points), highlighting the broad-based nature of the market decline.

Other lagging sectors included chemical (-30.44 points), glass & ceramics (-27.96 points), transport (-16.01 points), tobacco (-14.12 points), food & personal care products (-12.58 points), modarabas (-8.92 points), engineering (-8.26 points),

synthetic & rayon (-5.61 points), refinery (-4.87 points), real estate investment trust (-1.86 points), textile weaving (-1.40 points), miscellaneous (-0.40 points), and vanaspati & allied industries (-0.27 points).

On the positive side, only a handful of sectors managed to close in green territory, with leather & tanneries adding 58.97 points, followed by textile spinning (+20.52 points), paper, board & packaging (+14.03 points),

close-end mutual fund (+2.78 points), sugar & allied industries (+1.39 points), leasing companies (+0.40 points), and woollen (+0.16 points), indicating limited strength in selective pockets of the market.

Scrip-wise, the downside was dominated by heavyweight banking, cement, fertilizer, and investment company stocks.

United Bank Limited emerged as the largest negative contributor, dragging the index by 1,094.31 points, followed by Engro Holdings (-549.21 points), Habib Bank Limited (-418.61 points), Fauji Fertilizer Company (-341.12 points), and Bank AL Habib (-295.76 points).

Other major laggards included National Bank of Pakistan (-228.53 points), HUBCO (-228.17 points), Systems Limited (-135.05 points), Bank of Punjab (-105.78 points),

Oil & Gas Development Company (-105.54 points), Meezan Bank (-100.07 points), Pakistan State Oil (-88.85 points), DG Khan Cement (-86.36 points), Maple Leaf Cement (-83.20 points), and MCB Bank (-82.48 points).

Additional pressure came from Adamjee Insurance, Askari Bank, Fauji Cement, Mari Petroleum, Cherat Cement, Bank Alfalah, Kohat Cement, The Searle Company, Nishat Mills, Thal Limited, Pak Elektron, GlaxoSmithKline Pakistan,

Pakistan Telecommunication Company, Pakistan Stock Exchange, and Lucky Cement, reflecting broad weakness across banking, cement, fertilizer, technology, pharmaceutical, and energy sectors.

On the upside, gains remained limited and concentrated in a handful of stocks.

TRG Pakistan led the gainers, contributing 98.11 points to the index, followed by Service Industries (+58.97 points), K-Electric (+32.81 points), Sazgar Engineering Works (+21.23 points), and Gadoon Textile Mills (+20.52 points).

Other positive contributors included Air Link Communication, Cnergyico PK, Packages Limited, Pakistan Oilfields Limited, Nestlé Pakistan, Pakistan Services Limited, FrieslandCampina Engro Pakistan, Atlas Honda, and Rafhan Maize Products, reflecting selective buying interest in a few defensive and growth-oriented names despite the broader market weakness.

FIPI/LIPI

Foreign investors remained marginal net buyers during the week, with total net foreign buying in the equity segment standing at Rs9.42 million ($33,768).

Within foreign flows, overseas Pakistanis recorded net buying of Rs1.55bn ($5.54m), which was largely offset by net selling from foreign corporates amounting to Rs1.51bn ($5.42m). Foreign individuals also remained net sellers during the week.

On the local side, individuals emerged as the largest net buyers with inflows of Rs3.96bn, followed by broker proprietary trading at Rs298.66m and NBFCs at Rs57.46m.

Meanwhile, mutual funds remained the largest net sellers, offloading equities worth Rs2.48bn, followed by companies with net selling of Rs1.41bn. Insurance companies, banks/DFIs, and other organizations also remained net sellers during the week.

Copyright Mettis Link News