Karachi, February 14, 2026 — The Pakistan Stock Exchange (PSX) endured a tumultuous week ending February 13, 2026, as the benchmark KSE-100 index fell sharply by 8,920 points, closing at 179,604, marking a 2.46% decline week-on-week (WoW). Market analysts described the week as a “bloodbath,” driven by selling pressure, some weaker-than-expected corporate results, and heightened volatility related to Reko Diq concerns.
Market Highlights for the Week
Analysts at Arif Habib Limited noted that the bearish trend dominated throughout the week. Key economic indicators included:
• Moody’s Rating Update: Pakistan’s banking system outlook revised from positive to stable. Analysts said macroeconomic recovery remains gradual.
• Remittances: Increased 15% YoY to USD 3.5bn in Jan’26, though MoM declined by 4%.
• Auto Sales: Rose 74% MoM to 23.1K units in Jan’26; 35% YoY growth.
• MSCI Index Review (Feb’26): ABOT deleted from MSCI FM Standard Pakistan Index; SEPL and ZAL added; LPL removed from MSCI Small Cap Index.
• Oil & Gas Production: Gas down 7.8% WoW to 2,798 mmcfd; Oil down 11.7% WoW to 59,121 bopd.
• Government Debt: Increased 1.3% MoM to PKR 78.5trn (+9.6% YoY).
• SBP Reserves: Rose USD 20.6mn WoW to USD 16.18bn, with import cover at 2.53 months.
• Pakistani Rupee: Largely stable, marginally strengthening 0.03% WoW to PKR 279.62/USD.
Sector-Wise Contribution to KSE-100
| Sector | Points Contribution |
| Banks | -1,901 |
| E&Ps | -1,298 |
| Technology | -484 |
| Fertilizer | -372 |
| Power | -306 |
| Investment Banks | +631 |
| Pharma | +36 |
| Transport | +5 |
| Vanaspati & Allied | +2 |
| Tobacco | +1 |
Top Scrip-Wise Contributors
| Positive Contributors | Points | Negative Contributors | Points |
| ENGROH | +630.72 | OGDC | -578.04 |
| FFC | +81.30 | PPL | -571.63 |
| AGP | +72.90 | UBL | -409.59 |
| INDU | +30.72 | EFERT | -362.24 |
| MCB | +25.44 | BAHL | -359.35 |
Market Volume & Value
• Average Volume: 862.26 million shares (down 15% WoW)
• Average Value Traded: USD 152.2 million (down 13.4% WoW)
Outlook & Recommendations
Analysts predict a temporary moderation in the KSE-100 Index in the coming week due to the onset of Ramadan. Ongoing corporate results may provide upside if companies report stronger-than-expected earnings. Additionally, upcoming trade and current account data could influence market trends.
Currently, the KSE-100 Index trades at a PE of 9.1x, offering a dividend yield of ~6.7%, making select sectors and stocks attractive for long-term investors despite short-term volatility.
Market experts emphasized caution, highlighting that global and domestic macroeconomic factors, investor sentiment, and geopolitical developments are likely to continue influencing trading patterns in the near term.