KSE-100 index falls 2.6% amid sluggish trading – Week ending Jan 30, 2026

Karachi, January 31, 2026 – The Pakistan Stock Exchange (PSX) experienced a quiet trading week as the benchmark KSE-100 Index declined by 4,993 points, or 2.6%, closing at 184,174 for the week ended January 30, 2026. Market activity remained sluggish, reflecting cautious investor sentiment amid geopolitical tensions, mixed corporate earnings, and a stable policy rate.

According to a research report by Arif Habib Limited (AHL), factors influencing the market included Fertilizer FFC’s 4QCY25 results falling below expectations (given its ~9.5% weight in the KSE-100), the status quo on the policy rate, and rollover-week trading dynamics.

On January 26, the State Bank of Pakistan (SBP) maintained the policy rate at 10.5% and projected FY26 GDP growth between 3.75–4.75%, a current account deficit of 0–1% of GDP, and inflation stabilizing at 5–7% over FY26–FY27. To enhance liquidity, SBP reduced the cash reserve requirement for banks, lowering the average fortnightly CRR from 6% to 5% and the minimum daily CRR from 4% to 3%.

Economic indicators showed improvement: banking deposits rose 23.6% YoY to PKR 37.4 trillion, investments increased 30.1% YoY to PKR 37.9 trillion, gas output reached 3,197 mmcfd, and oil production hit 67,066 bopd. Power sector circular debt stood at PKR 1.7 trillion, while SBP-held reserves increased slightly to USD 16.1 billion. The Pakistani rupee strengthened marginally to PKR 279.80/USD.

Market analysts expect the KSE-100 Index to remain positive next week, supported by the upcoming headline inflation data (~5.8% YoY) and ongoing corporate earnings announcements. The index is currently trading at a PER of 9.3x with a dividend yield of ~5.3%.

KSE-100 Weekly Performance – Week Ending Jan 30, 2026

This summary provides investors with key indicators affecting market sentiment and the likely trajectory of the KSE-100 Index in the coming week.