Stocks slid on Monday as persistent foreign selling and underwhelming corporate earnings kept investors risk-averse, with political noise and uncertainty around IMF-linked policy direction adding to the pressure.
The Pakistan Stock Exchange’s benchmark KSE-100 Index traded between a high of 179,969.22 (up 365.49 points, or 0.20%) and a low of 173,574.26 (down 6,029.47 points, or -3.36%) against the previous close of 179,603.73.
“The market remained under pressure due to persistent foreign selling and corporate earnings that failed to justify elevated valuations,” said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.
“Ongoing domestic political developments further dampened sentiment, keeping investors cautious and adding to the weakness,” he added.
Analysts expect measured activity in the coming week as Ramazan begins, with shorter sessions and subdued participation likely to cap momentum.
The corporate results season could still offer support if earnings surprise on the upside, while upcoming trade and current account data will be watched for any sign of stabilisation that could limit further downside.
“Stocks staged a massive selloff as investors weigh the impact of the super tax on high-earning corporates, projections for higher inflation and US India trade deal on Pakistan exports,” added Ahsan Mehanti, Managing Director and CEO, Arif Habib Commodities.
He further added: “Political noise, uncertainty over outcome of IMF [International Monetary Fund] talks and concerns for fiscal impact of aligning SOEs losses played a catalyst role in bearish activity at PSX.”
Remittances rose 15% YoY to $3.5 billion in January 2026, though they slipped 4% month-on-month. Automobile sales rebounded to about 23,000 units in January, according to the Pakistan Automotive Manufacturers Association.
Meanwhile, changes in Morgan Stanley Capital International’s (MSCI) February review led to removals and inclusions of Pakistani equities, triggering portfolio adjustments.
On Friday, the KSE-100 fell 908.92 points (0.50%) to close at 179,603.73, after moving between 180,832.66 and 178,237.14.
