Karachi, January 10, 2026 – Pakistan Stock Exchange’s benchmark KSE-100 Index recorded a blockbuster week from January 5 to 9, posting a 3% weekly gain despite minor setbacks in the final two sessions.
Analysts at Arif Habib Limited noted that the KSE-100 surged from 179,035 last week to 184,410, adding 5,375 points. The rally was fueled by strong buying in heavyweight stocks, new year market optimism, and positive company-specific developments.
Market drivers included robust government T-bill auctions, raising PKR 979.3 billion against a target of PKR 850 billion, with yields declining across all tenors by 28.6–33.8 basis points. Investor participation remained strong at PKR 2,554.6 billion.
Economic indicators also supported market sentiment. Worker remittances rose 17% YoY to USD 3.6 billion in December 2025, taking 1HFY26 cumulative inflows to USD 19.7 billion, up 11% YoY. Tariff rebasing from FY to CY basis is expected to reduce power purchase prices by PKR 0.51/KWh, lowering base tariffs by 0.62/KWh in CY26.
Agricultural trends showed stable cotton arrivals nationwide, with Punjab down 4% and Sindh up 4% YoY, while total cotton production is projected at 6.8 million bales, a 33% shortfall from targets. Meanwhile, central government debt reached PKR 77.5 trillion in Nov’25, up 10.2% YoY, while SBP reserves rose by USD 140.6 million to USD 16.1 billion.
The Pakistani rupee strengthened slightly against the US dollar, closing at PKR 280.02/USD, up 0.03% WoW. Analysts expect overall market sentiment to remain broadly positive, with the KSE-100 currently trading at a PER of 9.2x and offering a dividend yield of ~5.4%.
This strong weekly performance highlights investor confidence, solid economic fundamentals, and market resilience amid fluctuating domestic and international conditions.