"Which shares should I buy?" is the most common question new investors in Pakistan ask. We can't answer it for you, because the right answer depends on your money, your time horizon and how much risk you can stomach. What we can do is show you which PSX companies stand out on hard numbers, explain how we found them, and be honest about the risks.
Think of this as a watchlist, not a buy list.
Important: read this first
- This is not investment advice. It is a data screen for education. We are not licensed advisers.
- Past returns do not predict future returns. The five years from October 2021 were exceptional. The KSE-100 went from about 44,900 to about 168,600, a gain of roughly 30% a year. That was a once-in-a-generation re-rating from very cheap valuations. Do not expect it to repeat.
- The market is in a correction. The KSE-100 closed at 168,636.85 on 1 October 2026, about 11% below its January peak, with oil high, inflation above 10% and interest rates at 11.5%. See the market page for live levels.
- Any stock can fall 30% to 50%. Almost every name below has done so at some point in the last five years.
How we screened
We started with the 70 largest companies on the PSX by market value, mostly KSE-100 members, using data to the close on 30 September 2026. For each we measured:
| Measure | What it tells you |
|---|---|
| 5-year price growth a year (CAGR) | How fast the share price grew, corrected for bonus shares where we know of them |
| Dividend yield | Last 12 months' dividends ÷ price |
| Estimated total return a year | Price growth + current yield (an approximation) |
| Volatility | How much the price swings; higher means bumpier |
| Worst fall (max drawdown) | The biggest peak-to-trough drop in five years |
| Return per unit of risk | Estimated total return ÷ volatility |
| Dividend record | Whether it paid every year for five years with no cut |
| Liquidity | Average daily traded value |
We then sorted companies into four lists: steady holds, dividend payers, liquid trading names and laggards. Prices in the tables below are closing prices on 1 October 2026.
The steady-hold list: best return for the risk
These are steady dividend payers with the best five-year return per unit of risk.
| Stock | Sector | Price | P/E | Yield | 5-yr growth a year | Worst fall | Shariah |
|---|---|---|---|---|---|---|---|
| UBL | Bank | Rs 417.66 | 7.0 | 7.7% | 48.2% | −39% | |
| FFC | Fertiliser | Rs 538.46 | 10.0 | 6.9% | 39.8% | −30% | Yes |
| MEBL | Islamic bank | Rs 553.65 | 10.9 | 5.8% | 34.5% | −46% | Yes |
| OGDC | Oil and gas | Rs 313.39 | 5.6 | 5.4% | 30.7% | −31% | Yes |
| MARI | Oil and gas | Rs 628.35 | 8.7 | 6.0% | 29.7% | n/a | Yes |
| MCB | Bank | Rs 388.54 | 8.6 | 9.3% | 21.3% | −35% | |
| EFERT | Fertiliser | Rs 194.31 | 12.6 | 7.7% | 22.7% | −35% | Yes |
| POL | Oil and gas | Rs 753.52 | 6.7 | 13.3% | 15.2% | −30% | |
| ABL | Bank | Rs 170.04 | 5.8 | 9.4% | 20.1% | −33% | |
| HBL | Bank | Rs 303.78 | 6.9 | 7.9% | 22.7% | −54% |
Yields here use 1 October prices; growth and worst-fall figures come from the 30 September screen.
Sector by sector
Banks
Names to watch: UBL, MCB, MEBL, HBL, ABL, BAHL.
Banks are the backbone of most Pakistani income portfolios. With the policy rate at 11.5%, they earn wide margins and pay dividend yields of roughly 7% to 10%. UBL had the best risk-adjusted record in our whole screen. MEBL is the only bank in the Shariah KMI-30 index.
The risk: if inflation falls and the State Bank cuts rates, bank earnings would likely slow. NBP shows a 21% yield, but that came from a one-off record dividend after seven years of no payouts. Do not treat it as typical.
Oil and gas exploration
Names to watch: OGDC, PPL, MARI, POL.
These are among the cheapest large companies on the PSX, at about 5.6 to 8.7 times earnings. High oil prices lift their rupee revenue, and a government plan to cut gas-sector circular debt would help if it is carried out. POL has the highest yield of the group at about 13%. OGDC and PPL are also among the most heavily traded stocks on the exchange.
The risk: circular debt, where state entities owe these companies money, has held back their cash flow for years. A sharp fall in oil would also hit earnings.
Fertiliser
Names to watch: FFC, EFERT, FATIMA.
Fertiliser is defensive: farmers buy urea in good times and bad. FFC had the second-best risk-adjusted return in our screen, with the lowest worst-fall of the steady holds (−30%). FATIMA grew fast (about 37.6% a year) but is not yet a steady dividend payer by our measure.
The risk: gas prices. These companies depend on subsidised gas, and changes to gas pricing policy can squeeze margins.
Power
Name to watch: HUBC.
Hub Power yields about 10% and is Shariah-compliant. It is also one of the more liquid large stocks. The risk: power-sector circular debt and government renegotiation of power-plant contracts. Its share price is down about 15% over the past year.
Fuel marketing and refineries
Names to watch, for traders: PSO, ATRL, APL.
High oil prices create inventory gains for fuel marketers and refiners, and refinery upgrade deals are expected. ATRL is up about 74% over the past year. These stocks are liquid and volatile, which suits active traders more than long-term holders. APL is the steadier choice, with a yield of about 11%.
The risk: these gains can reverse fast when oil falls, and circular debt affects PSO in particular.
Cement
Names to watch, for later: LUCK, MLCF, DGKC, FCCL.
Cement is a classic interest-rate play. With rates at 11.5% and northern sales down 9.4% year on year in August, most cement stocks are down 14% to 28% over the past year. The sector usually rallies when the State Bank starts cutting rates, so many investors watch it and wait for that signal.
Autos
Names to watch, for later: INDU, SAZEW, MTL.
INDU pays a high dividend (about 11%) but car demand depends on financing costs. SAZEW had the highest five-year return in our screen, about 66% a year, but also a 70% worst fall. That is the definition of a high-risk stock.
Technology
Name to watch: SYS.
Systems earns much of its revenue abroad, so it benefits when the rupee weakens. But it trades on about 23.5 times earnings, far above the market, and is down about 22% over the past year as foreign investors sold.
Consumer goods: quality laggards
Names: NESTLE, PAKT, COLG, UPFL.
These are high-quality companies with reliable dividends. But over five years their share prices have barely moved:
| Stock | 5-yr price growth a year |
|---|---|
| NESTLE | +3.9% |
| PAKT | +3.6% |
| UPFL | +5.9% |
| ABOT | +3.4% |
| LCI | +5.2% |
| RMPL | −3.5% |
They can provide stability in a portfolio, but they have badly lagged the market in a bull run. Several also have very high share prices (NESTLE about Rs 7,100, UPFL about Rs 25,500) and trade thinly.
Liquid stocks for active traders
If you trade rather than invest, liquidity matters: you need to get in and out without moving the price. These were the most actively traded quality names over the past 30 days.
| Stock | Average daily turnover | Volatility | Sector |
|---|---|---|---|
| PPL | Rs 1.34bn | 39 | Oil and gas |
| OGDC | Rs 1.08bn | 35 | Oil and gas |
| ATRL | Rs 1.06bn | 42 | Refinery |
| PSO | Rs 0.95bn | 36 | Fuel marketing |
| MLCF | Rs 0.81bn | 42 | Cement |
| DGKC | Rs 0.62bn | 42 | Cement |
| NBP | Rs 0.60bn | 40 | Bank |
| BOP | Rs 0.50bn | 45 | Bank |
| HUBC | Rs 0.49bn | 33 | Power |
| LUCK | Rs 0.41bn | 33 | Cement |
Volatility is annualised, in percent. For our current trading views, see signals.
Stocks to be careful with
- Penny stocks. CNERGY is the most traded stock by value (about Rs 1.6bn a day) but is low-priced, very volatile and fell as much as 66% in five years. KEL, WTL and other stocks under Rs 10 trade huge volumes but are highly speculative.
- Yield traps. A very high yield, like NBP's, can reflect a one-off payment.
- Hot momentum names. Stocks that have doubled in a year, such as PRL (+154%) and PTC (+102%), can fall just as fast.
- Tips on WhatsApp and Telegram. "Guaranteed" picks from strangers are a common route to pump-and-dump losses.
How a beginner might use this list
- Start with your goal. Income? Look at the steady-hold and dividend names. Growth? Accept more risk and a longer horizon.
- Spread out. Eight to 15 stocks across at least four sectors is a common starting point. Do not put everything in banks or oil.
- Invest gradually. Adding a fixed amount each month, for example Rs 10,000, avoids betting everything on one day's price.
- Reinvest dividends if you don't need the income. Over long periods, reinvested dividends make a big difference.
- Use a well-rated broker. See our broker rankings and getting started guide.
- Keep learning. Our learn section explains P/E, dividend yield and other basics, and our dividends page tracks payouts.
Not financial advice. This is an educational data screen. Past performance, including the exceptional 2021 to 2026 re-rating, does not predict future results. Do your own research or consult a licensed adviser before investing.
Sources
- PSX data portal (dps.psx.com.pk): screener, daily price history and payouts (data to 30 Sep 2026; prices 1 Oct 2026)
- StockAnalysis: PSX dividend histories (DPS; one page per symbol)
- Investing.com: split histories (bonus and split adjustments)
- ProPakistani: cement sales fall in August
- Pakera: gas circular debt plan
- Pakera: SBP holds rate at 11.5%
- Business Recorder: KSE-100 closes at 168,636.85 (1 Oct 2026)