By Moaaz Manzoor

The Pakistan Stock Exchange remained under pressure during the week ended March 27, 2026, as persistent geopolitical tensions dampened investor sentiment.

The KSE-100 Index closed at 151,708 points, a decline of 1,033 points or 0.68% week-on-week. The benchmark remained volatile throughout the week, touching a high of 158,586 points and a low of 151,458, as uncertainty surrounding the Middle East conflict kept market participants cautious.

According to Arif Habib Limited, market direction remains closely tied to geopolitical developments, while upcoming inflation data for March 2026 will also be a key factor shaping investor sentiment. The brokerage house said the index’s near-term performance will largely depend on developments on the geopolitical front.

Sector-wise, the main drag on the benchmark came from Banks, which eroded 805 points, followed by Exploration and Production (496 points), Auto Assemblers (172 points), Oil Marketing Companies (135 points), and Pharmaceuticals (77 points). On the positive side, Technology added 391 points, followed by Investment Banks (327 points), Fertilizers (94 points), Cement (59 points), and Chemicals (32 points).

On a company-wise basis, United Bank Limited was the largest drag on the index, pulling it down by 733 points, followed by Oil and Gas Development Company (244 points), National Bank of Pakistan (224 points), Pakistan Petroleum Limited (211 points), and Sazgar Engineering Works (117 points). Meanwhile, Systems Limited contributed 422 points, followed by Engro Holdings (332 points), Meezan Bank (319 points), Fauji Fertilizer Company (132 points), and Lucky Cement (113 points).

Trading activity remained strong during the week. Average daily volumes rose to 486 million shares, up 52% week-on-week, while the average value traded increased by 37% to $97.3 million.

Commenting on market performance, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the index witnessed profit-taking in the final session, declining by 1,200 points, or 0.79%, to close at 151,708 points. He noted that early gains were reversed due to broad-based selling pressure.

Arif Habib Limited said the benchmark index is currently trading at a price-to-earnings ratio of 7.5 times, offering a dividend yield of around 6.8%. Its preferred picks include National Bank of Pakistan, Oil and Gas Development Company, Pakistan Petroleum Limited, Fauji Fertilizer Company, Lucky Cement, Hub Power Company, Pakistan State Oil, and Attock Refinery.

Meanwhile, AKD Securities said market sentiment will remain linked to developments in the Middle East, while investor focus will also stay on the government’s energy measures, fuel import diversification, and progress on the International Monetary Fund review. The brokerage house added that any de-escalation could trigger a strong recovery, as valuations have become more attractive, with the forward price-to-earnings ratio at 6.4 times. It expects the KSE-100 Index to reach 263,800 by December 2026.

Credit: INP-WealthPk