KARACHI:
Pakistan’s fairness market closed the week ended on December 26, 2025 on a robust footing, because the benchmark KSE-100 index gained 0.58% on a week-on-week foundation, extending its record-breaking run amid a convergence of optimistic macroeconomic and coverage developments.
Investor sentiment was underpinned by the profitable privatisation of Pakistan Worldwide Airways (PIA), bought to a consortium led by AHCL for Rs135 billion, marking the nation’s first main divestment in almost 20 years and a key milestone underneath the IMF programme.
The market additionally drew assist from the State Financial institution of Pakistan’s choice to chop the coverage fee by 50 foundation factors to 10.5% within the earlier week, which helped revive threat urge for food and strengthened expectations of additional easing as inflation moderates.
Mounted-income indicators echoed enhancing sentiment, with robust participation in treasury invoice auctions and yields declining sharply throughout tenors, reflecting ample liquidity and easing inflation expectations.
Exterior financing flows additional strengthened the outlook as multilateral lenders, together with the World Financial institution and the Asian Improvement Financial institution, permitted recent funding to assist macroeconomic stability and growth initiatives.
In the meantime, enhancing personal sector credit score progress and progress on structural reforms, together with plans to public sale 5G spectrum early subsequent 12 months, added to optimism, protecting equities in focus regardless of a moderation in buying and selling volumes.
On a day-on-day foundation, the PSX began the week with a lacklustre session because the KSE-100 index remained vary sure and closed at 171,204, down 200 factors (-0.12%).
The market witnessed one other range-bound session on Tuesday, the place the index closed almost flat at 171,074, down 130 factors (-0.08%). The bourse registered a 3rd range-bound session on Wednesday, which closed at 170,830, down 246 factors (-0.14%).
Nevertheless, a optimistic session was noticed on Friday because the index gained to shut at an all-time excessive of 172,400, up 0.92%.
Topline’s weekly evaluation famous that the KSE-100 index elevated 0.58% on a WoW foundation. This acquire could be accredited to the profitable privatisation of PIA at a price of Rs135 billion ($480 million) – one of many largest privatisation offers within the historical past of Pakistan.
Other than that, the reduce within the coverage fee by 50 foundation factors to 10.5% continued to garner investor curiosity out there. In different main occasion through the week, the federal government raised Rs883 billion within the T-bill public sale towards a goal of Rs600 billion and maturity of Rs471 billion, the place yields declined within the vary of 36 to 72 foundation factors.
On the PSX, common each day traded volumes and worth through the week stood at 736 million shares and Rs31.5 billion, respectively, Topline mentioned. Syed Danyal Hussain of JS International famous that the KSE-100 index prolonged its report run, closing the week at 172,400, up 0.6% WoW, though common each day turnover fell 25%.
Sentiment was supported by a key privatisation breakthrough, the place the federal government bought a 75% stake in PIA to a consortium, led by AHCL, for Rs135 billion. The deal marks the primary main privatisation in 20 years and meets an necessary benchmark underneath the IMF programme, he mentioned.
Exterior financing momentum additionally remained agency, with the World Financial institution approving $700 million to assist macroeconomic stability, whereas the Asian Improvement Financial institution signed two financing initiatives totalling $730 million. Cumulatively, Pakistan acquired international help of round $3 billion throughout 5MFY26.
In an encouraging growth, the Pakistan Banks Affiliation (PBA) revealed that non-public sector lending in FY26 up to now reached Rs1.5 trillion, resulting in elevated liquidity. Within the newest T-bill public sale, the federal government raised Rs911 billion towards a goal of Rs471 billion, with yields falling 36-78 foundation factors throughout tenors.
In one other growth, the Financial Coordination Committee (ECC) permitted plans to public sale 5G spectrum by the tip of January 2026 or early February 2026. Lastly, the State Financial institution’s international alternate reserves edged up by $16 million to $15.9 billion, Hussain mentioned.
