Karachi: JS Research has advised investors to adopt a strategy of cautious positioning and gradual accumulation in fundamentally strong stocks, viewing the current market downturn as a potential long-term opportunity.
The Pakistan Stock Exchange (PSX) has corrected 19% from its January 2026 peak amid heightened risk-off sentiment driven by geopolitical tensions.
The benchmark KSE-100 index has faced sharp volatility, recently trading around the 153,000–154,000 level after significant swings earlier in March.
Analysts at JS Research, led by Muhammad Waqas Ghani, CFA, highlight that historical patterns indicate strong recoveries once geopolitical uncertainties ease.
However, escalating Middle East tensions have propelled crude oil prices above US$100/bbl (up 63% in CY26 to date), with Pakistan’s imports linked to Dubai crude and refined products benchmarked around US$122/bbl for motor spirit (MS) and US$165/bbl for diesel.
This surge threatens to inflate the country’s import bill and reignite inflationary pressures due to heavy reliance on imported energy.
In the near term, energy-linked sectors—including Exploration & Production (E&Ps), Oil Marketing Companies (OMCs), and Refineries—are expected to outperform relatively. Meanwhile, high dividend-yielding segments such as Banks and Fertilizers may offer downside protection amid uncertainty.
The report cautions that a prolonged crisis could materially alter the outlook but emphasizes that such volatile periods historically create attractive entry points for multi-year investors focused on quality companies.