KARACHI: The Pakistan Stock Exchange (PSX) finished the third consecutive week in the red, with the benchmark KSE-100 index dipping below the 180,000-point mark amid lingering economic and security concerns. Investor sentiment remained weak, with selling pressures exacerbated by disappointing corporate earnings and a lack of positive news.
According to Topline Securities Ltd, the KSE-100 index suffered staggering losses driven by profit-taking following the release of below-expectation results for the December quarter. Market participants were also wary of the impact of the super tax on profitability, further undermining confidence.
During the week, some key economic data were released. Remittances for January stood at $3.5 billion, up 15pc from the previous year but down 4pc month-on-month (MoM). The auto sector saw a notable improvement, with sales reaching 23,055 units, a 36pc year-on-year (YoY) increase and a 74pc MoM surge.
Index settles below 180,000-milestone after losing almost 9,000 points
However, concerns persisted over political and security issues, particularly the delayed financial close of the Reko Diq mining project. This uncertainty contributed to market volatility and led to significant selling in sectors like oil and gas, banks, and fertilisers.
As a result, the KSE-100 index ended the week at 179,604 points, a decrease of 8,920 points or 2.46pc week-on-week, according to Arif Habib Ltd (AHL).
The average trading volume declined by 15pc to 862.26 million shares, while the average value traded fell 13.4pc to $152.2 million week-on-week. Market participation showed signs of strength, with the average daily traded volume increasing 8pc to 1.1 billion shares.
In terms of international developments, the UAE extended a $2bn lifeline to Pakistan ahead of crucial IMF talks.
The Pakistani rupee showed stability against the US dollar, strengthening by 0.03pc to close at Rs279.62 against the US dollar. Meanwhile, central government debt increased 1.3pc month-on-month to Rs78.5 trillion by December 2025, reflecting the ongoing fiscal challenges faced by the government.
Selling pressure was most evident in the oil and gas exploration (E&Ps), banking, and technology sectors, which collectively accounted for most of the index’s losses. Notably, the banking sector contributed a loss of 1,901 points, while E&Ps lost 1,298 points.
On the other hand, the investment banking and pharmaceutical sectors saw slight positive contributions, helping to offset some losses. Engro Holdings, Fauji Fertiliser, and AGP were among the top performers, providing some relief to the broader market.
Moody’s revised Pakistan’s banking system outlook from positive to stable, noting gradual improvements in macroeconomic indicators but highlighting a slow recovery in the operating environment. Additionally, Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $20.6 million to $16.18bn, providing some stability amid external pressures.
Gas and oil production saw declines in the first week of February, with gas output down 7.8pc week-on-week and oil production dropping 11.7pc week-on-week. The overall economic environment, marked by rising government debt, weighed on market sentiment.
Looking ahead, analysts from AHL predict a possible moderation in the KSE-100 index as Ramazan approaches, with expectations of further earnings reports that could provide some upside. Positive developments in economic data, such as trade figures and the current account balance, could offer support to the market.
The index currently trades at a price-to-earnings ratio of 9.1x, offering an attractive dividend yield of approximately 6.7pc.
Published in Dawn, February 15th, 2026