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March 27, 2026
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“Volatility Persists as Geopolitical Risks Keep Market Under Pressure”
The Pakistan Stock Exchange experienced a volatile week, with the KSE-100 Index closing at 151,708, down ~1,033 points (-0.68% WoW), as persistent geopolitical tensions and cautious investor sentiment weighed on market direction. Despite intermittent recovery attempts, the index remained under pressure, reflecting a lack of strong conviction among participants.
Heavyweight sectors such as banks and E&Ps led the downside, driven by risk-off behavior and concerns over global developments, while selective support emerged from technology, fertilizers, and cement stocks, indicating targeted accumulation at relatively attractive levels. The market also witnessed improved participation, with average volumes rising to ~486mn shares (+52% WoW), highlighting increased activity amid ongoing volatility.
From a contribution standpoint, major laggards included UBL, OGDC, NBP, and PPL, whereas positive contributions were seen from SYS, ENGRO, MEBL, FFC, and LUCK. Despite the cautious environment, valuations remain relatively attractive, with the market trading near ~7.5x PE and offering ~6.8% dividend yield, which may continue to support selective buying interest.
Looking ahead, market direction will remain highly sensitive to geopolitical developments, inflation trends, and monetary policy signals. Any progress toward de-escalation could act as a catalyst for recovery, while continued uncertainty may keep volatility elevated. Investors are advised to maintain a disciplined and selective approach, focusing on fundamentally strong companies with sustainable long-term growth potential
“In volatile markets, patience is not optional — it’s strategy.”
— TradeFlow Advisors
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