PSX benchmark index down 0.70%WoW

Pakistan Stock Exchange (PSX) remained volatile throughout the week, amid persistent Middle East military conflict driving volatility in international oil prices. The benchmark index lost 1,126 points or 0.7% during the week to close at 152,740 on Thursday, March 19, 2026, the last trading day before Eid Holidays.

Market participation remained lackluster during the week, with average daily traded volume declining to 418 million shares, from 548 million shares in the prior week. Developments on the economic front remained encouraging, as the country posted Current Account surplus of US$427 million in February 2026, against a deficit of US$85 million during the same period last year, primarily driven by higher workers’ remittances.

Industrial activity (LSMI) expanded by 10.5%YoY in January 2026, led by growth in the automobile and textile sectors.

Power generation increased by 11%YoY in February 2026, supported by lower tariffs and a shift of industrial consumers towards national grid.

Urea offtakes declined by 28%YoY during February 2026 due to elevated channel inventory following advance procurement in December 2025. offtakes rose 2.5x YoY over the same period.

T-Bill yields rose by 51 to 100bps in the first auction following SBP decision to leave policy rate unchanged.

Other major news flow during the week included: 1) Pakistan secures alternative fuel supply from Gulf amid regional tensions, 2) ADB unveils US$10 billion financing strategy for Pakistan, 3) IT exports rise 20%YoY to US$365 million, 4) REER drops to 102.5 in February 2026, and 5) GoP considering to hold fuel price till 31st March, 2026.

Woollen, Synthetic & Rayon and Close-End Mutual Fund were amongst the top performing sectors, while Leather & Tanneries, Commercial Banks and Miscellaneous were amongst the laggards.

Major selling was recorded by Foreigners and Mutual Funds with a net sell of US$9.3 million and US$4.5 million, respectively.

Banks and Individuals absorbed most of the selling with a net buy of US$10.3million and US$7.4 million, respectively.

Top performing scrips of the week were: PKGP, ABOT, IBFL, BNWM, and KOHC, while laggards included: NBP, AICL, PABC, UNITY, and SRVI.

Going forward, AKD Believes market sentiment will hinge on the developments in the Middle East conflict. At the same time, investor focus will remain on the government’s energy conservation measures, diversification of fuel imports, and progress on the IMF review.

Over the medium term, any de -escalation in the conflict could spark a strong market rebound, as recent corrections have made valuations attractive.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.