NYTODAY:
Pakistan’s equity market maintained its strong upward momentum at the start of 2026, with the benchmark KSE-100 Index climbing 1.52% on Friday to close above the 179,000 mark. The rally was largely driven by sustained buying from local institutional investors, reflecting growing confidence in the market’s short-term outlook.
The week ended on a positive note, supported by strong performances in the banking, fertiliser, and energy sectors. Investor sentiment was further bolstered by robust fertiliser sales data, which reinforced expectations of improved corporate earnings. Despite continued net selling by foreign investors, broad-based participation and elevated trading volumes highlighted strong domestic support for equities.
“The market’s advance was once again led by local institutional buying, with widespread participation across blue-chip stocks, confirming the prevailing bullish trend,” said Ali Najib, Deputy Head of Trading at Arif Habib Limited.
By the close of trading, the KSE-100 Index had gained 2,679.44 points, or 1.52%, to settle at 179,034.93.
According to Arif Habib Limited (AHL), the Pakistan Stock Exchange (PSX market update) recorded a robust start to the new year, with the benchmark index posting a week-on-week gain of 3.85%. Market breadth remained positive on Friday, as 64 stocks closed higher while 35 declined. United Bank Limited (UBL), Engro Fertilisers (EFERT), and Engro Holdings (ENGROH) were the top contributors to the index, rising by 4.73%, 10.0%, and 2.89%, respectively. On the downside, Lucky Cement (LUCK), Maple Leaf Cement (MLCF), and DG Khan Cement (DGKC) weighed on the index, falling by 0.54%, 1.09%, and 1.16%.
On the macroeconomic front, data released by the Pakistan Bureau of Statistics (PBS) showed that the country’s trade deficit widened to $3.7 billion in December 2025. Exports during the month stood at $2.3 billion, reflecting a sharp year-on-year decline of 20.4% and a month-on-month decrease of 4.3%. Imports, meanwhile, increased to $6.0 billion, up 2.0% year-on-year and 13.5% month-on-month. For the first half of FY26, the cumulative trade deficit expanded by 34.6% year-on-year to $19.2 billion.
PSX market update, reports suggest that the government is considering a levy of up to 5% on imports of mobile phones and electronic devices under a proposed policy framework for 2026–33. The development is expected to benefit local assemblers, including Airlink, whose shares rose 1.21%. From a technical perspective, AHL identified immediate support for the KSE-100 at 175,000 points, with a near-term upside target of 182,000 in the coming week.
A separate market review by Topline Securities noted that the KSE-100 Index continued its bullish trajectory, closing at 179,039 after gaining 1.52%. The rally was attributed to fresh allocations by local institutions, while strong investor interest was evident in fertiliser stocks following Topline’s report highlighting record urea sales of 1.356 million tonnes in December 2025 and low inventory levels of 0.31 million tonnes. The fertiliser sector ended the session 2.7% higher.
The top positive contributors to the index included UBL, EFERT, ENGROH, Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC), and Fauji Fertilizer Company (FFC), collectively adding 1,663 points. In terms of traded value, Bank of Punjab (Rs4.28 billion), Pakistan State Oil (Rs3.98 billion), PPL (Rs3.33 billion), OGDC (Rs3.24 billion), Mari Petroleum (Rs3.16 billion), Hub Power Company (Rs2.56 billion), and MCB Bank (Rs2.55 billion) dominated activity.
Total trading volume for the day stood at approximately 1.11 billion shares, compared to 1.40 billion shares in the previous session, while the value of shares traded amounted to Rs64.34 billion.
In the Ready Market, shares of 484 companies were traded, with 253 stocks closing higher, 201 declining, and 30 remaining unchanged. Bank of Punjab led volumes with 102.5 million shares traded, gaining Rs1.89 to close at Rs42.23. It was followed by K-Electric, which traded 100.09 million shares and slipped Rs0.12 to Rs6.35, and Media Times Limited, which rose Re1 to close at Rs5.84 on volumes of 43.63 million shares.
Foreign investors remained net sellers, offloading shares worth Rs7 billion, according to data released by the National Clearing Company.