Karachi: The stock market experienced significant volatility this week, largely influenced by ongoing military conflict in the Middle East, which contributed to fluctuations in international oil prices. The benchmark index fell by 1,126 points, or 0.7%, closing at 152,740 points on Thursday. As a result, average daily traded volumes decreased to 418 million shares from 548 million shares the previous week.

According to AKD Securities Limited, despite the market fluctuations, there were positive developments on the economic front. The country's current account recorded a surplus of $427 million in February 2026, compared to a deficit of $85 million in the same period last year, driven primarily by an increase in workers' remittances. Additionally, industrial activity witnessed a 10.5% year-on-year expansion in January 2026, propelled by growth in the automobile and textile sectors. Power generation also saw an 11% year-on-year increase in February 2026, supported by reduced tariffs and a shift of industrial consumers to the national grid.

However, not all sectors experienced growth. Urea off-takes fell by 28% year-on-year in February 2026 due to high channel inventory following advance procurement in December 2025, whereas DAP off-takes increased by 2.5 times over the same period. Treasury bill yields rose by 51-100 basis points in the first auction since the State Bank of Pakistan maintained its stance at the Monetary Policy Committee meeting.