Summary SECP report shows Pakistan’s capital market declined 14.54% in Q3 but remained stable amid global tensions, supported by strong domestic investor participation and debt market activity.
KARACHI (Dunya News) – The Securities and Exchange Commission of Pakistan has issued its report on the capital market for the third quarter of the fiscal year, highlighting resilience despite global economic uncertainty and geopolitical tensions.
According to the SECP, Pakistan’s capital market remained relatively stable even amid international turmoil, including the ongoing tensions linked to the US-Iran tensions. However, global indicators reflected volatility, with Brent crude oil prices declining by 13 per cent and US software stocks falling by 23 per cent during the period under review.
The report noted that Pakistan’s stock market recorded an overall decline of 14.54 per cent in the quarter. The benchmark KSE-100 Index had reached an all-time high of 191,033 points in January before retreating significantly. By the end of the quarter, the index closed at 148,743 points.
Market capitalisation also witnessed a notable contraction, falling from Rs19.69 trillion to Rs16.53 trillion, reflecting the broader downturn in equity valuations.
Foreign investors remained net sellers during the quarter, offloading shares worth Rs111.61 billion. In contrast, domestic investors played a stabilising role, recording net purchases of Rs111.55 billion, thereby cushioning the market against sharper declines.
Among local participants, companies led the buying activity with investments amounting to Rs73.51 billion. Mutual funds followed with purchases worth Rs23.78 billion, while individual investors contributed Rs20.25 billion in net buying.
The report further highlighted that National Bank of Pakistan topped the trading charts with a volume of Rs182.42 billion during the quarter.
From January to March, the primary market saw three new initial public offerings (IPOs), indicating continued activity despite challenging conditions.
In the debt market, government Ijarah Sukuk auctions attracted total investments of Rs811.53 billion, demonstrating strong demand for Shariah-compliant instruments. Meanwhile, the broader debt market recorded investments of Rs185.14 billion.
Additionally, the Pakistan Stock Exchange’s bills and bonds market saw trading activity worth Rs260.94 billion, while two privately issued Sukuk were listed during the same period.
The SECP report underscores the dual nature of the market during the quarter — marked by external pressures and declining valuations, yet supported by robust domestic participation and sustained investor interest in both equity and debt segments.
