The Pakistan Stock Exchange (PSX) was ranked among the worst global markets in the first quarter of 2026, posting negative returns in US dollar terms amid geopolitical tensions and domestic economic pressures, according to data from Topline Securities Ltd on Saturday.

The benchmark KSE-100 Index delivered a –14.6% return in USD terms during 3QFY26, placing Pakistan among the bottom three performing markets worldwide for the period.

Other regional markets also faced pressure, with India and Indonesia ranked first and second on the list, following a return of -19.4% and -19%, respectively, in USD terms, Business Recorder said in a report.

The weak performance comes in contrast to several frontier and emerging peers, the report added.

Markets such as Ghana, Oman, and Nigeria were among the best-performing, posting a return of 43.6%, 42.3% and 34.1%, respectively, in USD terms, according to the data.

Topline attributed country’s downturn chiefly to external geopolitical risks, particularly tensions involving Iran, Israel, and the United States, which weighed heavily on regional markets.

At the same time, “concerns over rising domestic inflation amid soaring global energy prices,” also dented investor sentiments

The data underscores the vulnerability of Pakistan’s equity market, which was ranked among the best-performing markets last year, to external shocks and macroeconomic instability.

In the outgoing week, the KSE-100 Index continued to experience volatility amid ongoing geopolitical developments, resulting in continued selling pressure.

The index closed at 150,399 points, marking a modest decline of 0.9% WoW, translating into a loss of 1,309 points.

According to Topline Securities, the market extended its losses following the government’s announcement to end fuel subsidies, under which diesel prices were increased by 55% and petrol prices by 43%, significantly dampening investor confidence.

However, a day after the sharp increase, Prime Minister Shehbaz Sharif on Friday announced that the government would reduce the petroleum levy on petrol by Rs80 per litre for one month.