KARACHI:
PSX closed the week on a cautious note, as the benchmark KSE-100 Index declined by 3,715 points (-2.30%) to settle at 157,496.
During the shortened trading session, investor sentiment remained subdued, with market participants largely adopting a defensive stance ahead of the weekend. The cautious approach was primarily driven by concerns over potential escalation in the ongoing US–Iran conflict, prompting investors to reduce risk exposure amid heightened geopolitical uncertainty.
On the macroeconomic front, according to a survey conducted by Arif Habib Limited, the State Bank of Pakistan is widely expected to maintain the policy rate at 10.5% in the upcoming monetary policy meeting. The anticipated status quo reflects the central bank’s cautious stance in light of rising geopolitical tensions and the potential inflationary impact of higher global oil prices.
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On the corporate front, Sazgar Engineering Works Limited reported encouraging sales figures for February 2026, with Haval (4-wheeler) sales reaching 1,682 units, representing a strong 91% year-on-year increase. Meanwhile, 3-wheeler sales recorded a modest growth of 2% YoY to 2,704 units, indicating steady demand in the segment.
Major drags on the index included UBL, ENGROH, LUCK, HUBC, FFC, MEBL, SYS, OGDC, EFERT, and PPL, which collectively erased 2,162 points from the benchmark.
Market participation remained relatively muted due to reduced trading hours, with total traded volume recorded at 354.4 million shares, while turnover stood at PKR 22.8 billion. KEL emerged as the volume leader, with 35.2 million shares traded during the session.
PSX recorded its sixth consecutive negative week, with the benchmark KSE-100 Index declining by 10,280 points (-6%) weekly. The index opened the week at 152,717, touched an intra-week high of 161,475, dropped to a low of 151,286, and eventually settled at 157,496.
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Going forward, geopolitical developments over the weekend, if any, are likely to influence market direction at the start of the week.
In addition, the upcoming monetary policy meeting of the State Bank of Pakistan, scheduled for Monday, March 9, will be closely watched, where the consensus expectation is for a status quo in the policy rate. However, any unexpected increase in interest rates could further weigh on the already fragile market sentiment.
