KARACHI: Pakistan’s equity market remained volatile and directionless during the week ended March 27 as escalating regional tensions, sharp swings in international oil prices and tightening monetary conditions continued to weigh on investor sentiment, resulting in another weekly decline.
The benchmark KSE-100 Index closed the week at 151,707.52 points, down 1,032.85 points or 0.7 percent week-on-week, compared with the previous close of 152,740.37 points. The index failed to sustain early momentum as geopolitical uncertainty and global energy price volatility prompted investors to trim exposure to equities.
International crude markets remained a key driver of sentiment, with Brent oil prices fluctuating sharply during the week, touching a low of USD100 per barrel before surging to USD111 per barrel by Friday, reflecting fragile hopes of diplomatic de-escalation in the Middle East. The persistent volatility in oil prices heightened inflationary concerns and dampened appetite for risk assets in Pakistan, which is highly sensitive to imported energy costs.
On the policy front, the International Monetary Fund (IMF) released the Memorandum of Economic and Financial Policies (MEFP), outlining broad expectations for Pakistan’s FY27 budget. The Fund proposed a tax collection target of Rs15 trillion and recommended more frequent adjustments in petroleum prices to better align domestic fuel rates with international market movements. These signals added to investor caution as they pointed to tighter fiscal measures and continued energy price pass-through in the coming fiscal year.
The debt market also reflected rising macroeconomic risks, as the latest Pakistan Investment Bond (PIB) auction saw yields surge by 150 to 200 basis points across various maturities, indicating mounting inflation expectations and risk premiums amid heightened geopolitical uncertainty.
Adding to concerns on the investment climate, Barrick Mining delayed the development timeline of the Reko Diq copper and gold project by 12 months, citing regional instability and domestic security challenges. The postponement was viewed as a setback for Pakistan’s mining sector and long-term foreign investment outlook.
On the external account side, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan stood at USD16.4 billion, posting a modest weekly increase of USD22 million, providing some stability to the rupee and macroeconomic outlook.
Overall market capitalization declined in line with the benchmark index, falling to Rs16.89 trillion (USD60.48 billion) from Rs17.07 trillion (USD61.12 billion) in the preceding week, reflecting erosion in equity valuations across major sectors.
Despite the downward trend in the index, trading activity picked up sharply. Average daily turnover in the ready market rose to 486.21 million shares, up 53.3 percent from 317.16 million shares in the previous week. In value terms, ready market turnover increased to Rs27.18 billion, compared with Rs18.77 billion a week earlier, indicating heightened speculative and short-term trading activity.
The BRIndex100 opened the week at 17,021.23 points, but fell sharply to close at 16,952.50 points, with total weekly turnover of 1.61 billion shares. Similarly, the BRIndex30 began the week at 59,951.02 points and finish at 58,870.86 points, with total turnover of 977.26 million shares.
Sector-wise, the market presented a mixed picture. Technology and communication stocks led the gainers, rising 3.1 percent, followed by chemicals, cement and fertilizer sectors, which posted moderate gains. On the other hand, refinery stocks emerged as the worst performers, declining 3.9 percent, followed by power, exploration and production, oil marketing companies and auto sectors, all of which remained under pressure due to uncertainty surrounding energy prices and demand outlook.
By trading volume, the power sector accounted for 17 percent of total activity, followed by food at 11 percent, technology and communication at 9 percent, banks and cement each at 8 percent, while the remaining sectors collectively contributed 46 percent of total volume.
Among individual stocks, Systems Limited (SYS) led the gainers with an 11.0 percent increase during the week, followed by PGLC which gained 9.6 percent, INIL which rose 7.0 percent, BNWM which advanced 6.4 percent, and PIBTL which added 5.0 percent. MEBL and PKGS also posted notable gains of 4.7 percent and 4.0 percent, respectively.
On the losing side, Kohinoor Textile Mills (KTML) topped the decliners with a drop of 11.2 percent, followed by SSGC which fell 9.6 percent, K-Electric (KEL) down 9.1 percent, Sazgar Engineering (SAZEW) down 8.9 percent, and Ghani Automobile (GAL) which shed 8.1 percent. Major banking stocks such as NBP and UBL also remained under pressure, declining 7.0 percent and 6.6 percent, respectively.
Analysts expect market direction in the near term to remain closely tied to geopolitical developments in the Middle East and global oil price movements. Any sustained spike in crude prices or delay in diplomatic progress could further pressure inflation expectations, bond yields and equity valuations.
Conversely, signs of stability in energy markets and clarity on IMF-driven fiscal measures may help restore investor confidence and stabilize the KSE-100 Index in the coming weeks.
Copyright Business Recorder, 2026