RECORDER REVIEW

KARACHI: Pakistan’s equity market closed the outgoing week on a historic note, with the benchmark KSE-100 Index extending its record-breaking rally to settle at 172,400.73 points, marking a week-on-week increase of 0.6 percent.

The index gained 996.24 points during the week, having opened at 171,404.49 points, underscoring sustained upward momentum as the market wrapped up the year-end phase at an all-time high. The advance came despite a visible moderation in cash market participation, as investor sentiment remained supported by key structural developments, external financing inflows, easing liquidity conditions, and continued policy traction.

During the week ending December 26, 2025, the BRIndex100 opened the week at 18,265.52 and edged higher to close at 18,292.67. Trading activity was strong, with total turnover amounting to approximately 2.05 billion. The BRIndex30 posted a more notable advance over the same period. It began the week at 59,075.56 and rose to close at 59,524.45. Investor participation remained healthy, generating a turnover of about 1.39 billion. Overall, both indices closed the week in positive territory, reflecting steady market momentum.

A central driver of market confidence during the week was progress on the privatization front. The federal government successfully auctioned Pakistan International Airlines Limited (PIA), with a consortium led by AHCL acquiring a 75 percent stake for Rs135 billion. The transaction represents Pakistan’s first major privatization in nearly two decades and fulfils an important structural reform benchmark under the International Monetary Fund (IMF) programme, reinforcing reform credibility at a critical juncture.

External sector developments further supported sentiment. During the week, the World Bank approved USD700 million to support macroeconomic stability, while the Asian Development Bank (ADB) signed two financing initiatives totaling USD730 million. As a result, Pakistan has received approximately USD3 billion in foreign assistance during the first five months of FY26, helping strengthen external buffers and financing visibility.

On the domestic front, banking sector indicators reflected improving credit dynamics. The Pakistan Banks Association (PBA) disclosed that private sector credit in FY26 to date has reached Rs1.5 trillion, pointing to increased liquidity availability and gradual revival in financing activity across segments of the economy.

Developments in the money market also remained supportive. In the latest Treasury bill auction, the government raised Rs911 billion, significantly exceeding the Rs471 billion target. The auction outcome was accompanied by a decline in yields ranging between 36 and 78 basis points across all tenors, reinforcing expectations of easing financial conditions.

In parallel, policy momentum continued as the Economic Coordination Committee (ECC) approved plans to auction 5G spectrum by end-January 2026 or early February 2026, a move expected to unlock investment and expand capacity in the telecommunications sector.

Meanwhile, the country’s external buffers showed marginal improvement. State Bank of Pakistan (SBP) foreign exchange reserves increased by USD16 million week-on-week to USD15.9 billion, reflecting a 0.1 percent weekly rise.

Despite these supportive macro developments, market activity on the cash segment moderated. Average daily turnover on the ready board declined 24.9 percent week-on-week to 736.06 million shares, compared with 979.70 million shares in the preceding week. Similarly, average daily traded value fell 36.7 percent to Rs31.55 billion, while turnover in dollar terms declined to USD112.61 million from USD177.88 million.

Market capitalization remained broadly stable during the week. PSX market capitalization stood at Rs19.46 trillion, largely unchanged from the previous week, while market value in dollar terms edged up to USD69.47 billion from USD69.43 billion.

Sector-wise performance remained mixed. Technology & communication stocks led the gains with a 3.4 percent increase, followed by fertilizers (+1.4 percent), Exploration & production (+1.0 percent), and banks (+0.8 percent), while on the downside, oil marketing companies (-1.3 percent), engineering (-1.1 percent), chemicals (-1.1 percent), power (-1.0 percent), and refineries (-0.9 percent) ended the week lower.

In terms of trading activity, technology & communication and investment banks each accounted for 14 percent of total traded volumes, followed by Power (13 percent), commercial banks (10 percent), and transport (5 percent), while other sectors collectively contributed 44 percent of overall volumes.

Among individual stocks on December 26, Javedan Corporation (JVDC) topped the gainers’ list, closing at Rs96.85, up 19.4 percent. Pakistan Telecommunication Company (PTC) advanced 16.7 percent to Rs54.20, while Kohat Cement (KOHC) gained 10.9 percent to Rs121.41. Other notable gainers included Bank of Punjab (BOP), Mehmood Textile (MEHT), PIBTL, and FATIMA Fertilizer.

On the losing side, DH Partners Limited (DHPL) declined 15.2 percent, followed by YOUW and Rafhan Maize Products (RMPL), both down 8.5 percent, while UNITY, Sui Southern Gas Company (SSGC), Ghandhara Automobiles (GADT), and TPLRF1 also closed lower.

Overall, the KSE-100 Index concluded the week — and the year-end phase — at a historic high, supported by progress on privatization, sustained multilateral engagement, easing yields, and improving domestic liquidity, even as cash market participation remained subdued.