KARACHI:
Pakistan’s inventory market prolonged its slide for a second consecutive week, with the benchmark KSE-100 index plunging 3.6% week-on-week to shut at 173,170 factors, as persistent overseas promoting, rising geopolitical tensions and cautious investor sentiment forward of an IMF evaluation triggered a broad-based correction from January’s peak ranges, brokerage knowledge confirmed.
On a day-on-day foundation, the Pakistan Inventory Trade (PSX) began the week with a pointy sell-off, when the KSE-100 plunged 5,150 factors (-2.87%) to shut at 174,454. Notably, the benchmark declined 9.49% from its January 2026 peak of 191,000, reflecting a significant correction.
On Tuesday, the PSX remained below sustained promoting stress because the index declined by 1,304 factors (-0.75%) to shut at 173,150. The bourse staged a powerful rebound on Wednesday, surging 5,703 factors (+3.29%) to settle at 178,853, marking a decisive restoration following the latest correction.
On Thursday, the market got here below intense promoting stress once more, with the KSE-100 plunging 6,683 factors (-3.74%) to finish the session at 172,170. The steep fall erased positive factors from the earlier session’s rebound and bolstered the delicate undertone prevailing out there. The PSX ended the week with consolidation across the 172,000 degree, closing at 173,170, up 999 factors (+0.58%). Arif Habib Restricted’s (AHL) weekly evaluation said that the KSE-100 noticed a pointy sell-off through the outgoing week, closing at 173,170 (-3.6% week-on-wee). The bearish momentum was largely pushed by persistent promoting and geopolitical dangers. Moreover, the index fell 15,997 factors, or 8.5%, from its January 2026 peak of 189,167, indicating a notable market correction.
Amongst macro statistics, the large-scale manufacturing (LSM) output grew by 0.4% year-on-year in December 2025 and recorded a 9.3% uptick on a month-on-month foundation. As of January 2026, gross inflows into Pakistan’s Roshan Digital Account (RDA) stood at $11,923 million, with $1,965 million repatriated and $7,655 million utilised regionally, leading to a internet repatriable legal responsibility of $2,303 million.
Within the newest revision, the high-speed diesel worth went up by Rs7.32 to Rs275.70/litre; petroleum levy stayed at Rs76.21/litre, inland freight equalisation margin rose by three paisa/litre and OMC margins remained at Rs7.87/litre. Auto financing elevated by 35.8% to Rs328 billion in Jan’26, up from Rs242 billion in Jan’25, AHL mentioned.
Moreover, Pakistan recorded a commerce deficit of $2.76 billion in Jan’26. Exports for the month totalled $3.1 billion, marking a rise of three.5% YoY and 34.8% MoM, whereas imports totalled $5.8 billion, reflecting a lower of 1% YoY and 4.4% MoM. Cumulatively, throughout 7MFY26, the commerce deficit elevated by 28.4% YoY to $22.1 billion. In Jan’26, a present account surplus of $121 million was recorded, in comparison with a deficit of $393 million in Jan’25 and a deficit of $265 million in Dec’25. Throughout 7MFY26, the nation posted a present account deficit of $1,074 million, in distinction to a surplus of $564 million in the identical interval of final yr.
The nation registered internet overseas direct funding (FDI) of $173 million in Jan’26, in comparison with a internet outflow of $135 million in Dec’25. Throughout 7MFY26, the online FDI declined by 41% to $981 million, in comparison with an influx of $1,661 million in 7MFY25, AHL added. Syed Danyal Hussain of JS World famous that international fairness markets remained below stress through the week amid escalating geopolitical tensions between Iran and the USA, after Washington warned of potential army motion if diplomatic efforts fail. Heightened uncertainty additionally lifted worldwide oil costs, with Brent crude rising to a seven-month excessive of $72 per barrel. Reflecting the weak international sentiment, the KSE-100 index fell by 6,434 factors (3.6% WoW) to shut at 173,170. On the home entrance, an IMF mission is scheduled to reach on February 26 to evaluation Pakistan’s progress below the $7 billion Prolonged Fund Facility and provoke discussions on the FY27 funds, Hussain mentioned.
