Pakistan’s stock market faced an overall decline of 14.54% during the third quarter of the fiscal year, as detailed in the recent report released today by the Securities and Exchange Commission of Pakistan (SECP). This contraction occurred amidst a challenging global economic landscape, characterized by a global crisis and the US-Iran conflict, which saw significant declines in international markets, such as a 13% fall in Brent crude oil and a 23% drop in US software stocks.
Despite these external pressures, SECP stated that the capital market demonstrated stability. However, key indicators locally reflect a challenging period.
The KSE 100 Index, a key benchmark, reached a historic peak of 191,033 points in January, but closed at 148,743 points at the end of the quarter. Meanwhile, total market capitalization decreased from 19.69 trillion rupees to 16.53 trillion rupees.
Foreign investors sold shares worth 111.61 billion rupees during this period. However, local market participants provided significant support, leading to net share purchases of 111.55 billion rupees.
In the domestic investment sector, companies purchased shares worth 73.51 billion rupees, while mutual funds committed 23.78 billion rupees. Individual investors also contributed, buying shares worth 20.25 billion rupees.
National Bank led trading activity, registering transactions of 182.42 billion rupees. Activity was also seen in the primary market, with three new Initial Public Offerings (IPOs) launched between January and March.
In the debt market, a total of 811.53 billion rupees was invested in government Ijara Sukuk auctions, while 185.14 billion rupees were directed towards the broader debt market. Furthermore, the Pakistan Stock Exchange’s Bills and Bonds Market facilitated business activity worth 260.94 billion rupees, and during this period, two private sukuks were listed on this exchange.