PSX benchmark index down 2.3%WoW

Pakistan Stock Exchange (PSX) remained volatile throughout the week, driven by ongoing Middle East military conflict. Overall, the benchmark index declined by 3,630 points or 2.3%WoW to close at 153,866 on Friday, March 13, 2026. Market participation remained moderate during the week, with average daily traded volumes declining to 548 million shares, from 791 million shares in the prior week.

Market began the week on a bearish note on Monday, as oil prices surged by more than 20% in intraday trading, with Brent crossing US$119/bbl in early trading as Iran conflict deepens with traffic halted at Strait of Hormuz. However, market largely recovered in subsequent session as oil prices stabilized after the announcement of release of 400 million bbl of oil from IEA strategic reserves, along with signals of easing sanctions on Russian oil following call between Trump and Putin. Moreover, status quo in the policy rate, with largely unchanged economic projections for inflation, current account, and foreign exchange reserves held by State Bank of Pakistan (SBP), supported investors’ confidence

IMF mission concluded its Pakistan visit for the third review, with end-of-mission statement noting significant progress, while discussions will continue in the coming days, including a more fully assessment of impact of recent global developments.

Economic indicators remained largely positive, with worker remittances remaining strong in February 2026, increasing by 5%YoY to US$3.3 billion.

OMC offtakes increased by 13%YoY, while auto sales continued growth, rising by 42%YoY during the month.

Other major news flow during the week included: 1) Prime Minister Shehbaz Sharif assures Mohammad Bin Salman of full solidarity during Jeddah visit, 2) Pakistan raises US$507 million through 5G spectrum auction, 3) GoP raises petrol and diesel prices, 4) RDA inflows rise 12%MoM and 19%YoY to US$242 million in the previous month, and 5) Foreign exchange reserves held SBP rose US$41 million to US$16.34 billion as of March 06, 2026.

Refinery, Leasing Companies and Jute were amongst the top performing sectors, while Woollen, Paper & Board and Transport were amongst the laggards.

Major selling was recorded by Companies and Foreigners with a net sell of US$16.5 million and US$13.4 million.

Individuals and Banks absorbed most of the selling with a net buy of US$10.8 million and US$11.7 million.

Top performing scrips of the week were: AICL, LOTCHEM, HINOON, PGLC, and YOUW, while laggards included: SAZEW, FCCL, MUREB, GHNI, and DGKC.

AKD Securities anticipates market sentiments to be dictated by developments in the ongoing Middle East conflict. GoP’s efforts to address energy conservation and the ongoing IMF review would also remain key areas of focus.

In the medium term, any de-escalation of Middle East military conflict could trigger a significant market recovery, as the recent correction has made market valuations much more appealing, with forward P/E now at 6.6x.

The brokerage house forecast the benchmark Index to reach 263,800 by end December 2026.

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