Weekly Market Roundup

January 18, 2026 (MLN): The Pakistan Stock Exchange closed the outgoing week on a marginally positive note, with the benchmark KSE-100 Index gaining 689.16 points, or 0.37% WoW, to settle at 185,098.83, compared to 184,409.67 at the close of the previous week.

Market mood drew additional support from the federal government’s move to maintain existing fuel prices for the upcoming fortnight beginning January 16, 2026.

The price of High Speed Diesel has been retained at Rs257.08 per litre, while petrol continues to be sold at Rs253.17 per litre.

Internationally, concerns linked to the prospect of US action against Iran and the resulting implications for global markets subsided after Washington scaled back its posture by pulling out a portion of its military personnel from bases across the Middle East.

Market Capitalization

In terms of market capitalization, total market cap in rupee terms increased to Rs5.43 trillion during the week, up from Rs5.41tr last week.

This represents an increase of approximately Rs20.0 billion, or 0.37% WoW, broadly mirroring the movement in the benchmark index.

In dollar terms, market capitalization rose to $19.41bn from $19.33bn in the previous week, marking an increase of around $76.5 million, or 0.40% WoW.

Consequently, USD returns for the week stood at 0.40%, compared to 3.03% last week, indicating moderation in foreign-adjusted gains amid a relatively stable exchange rate.

On a macroeconomic front, automobile financing rose marginally by 0.33% MoM to Rs319.1bn in December 2026, marking a sharp 35.5% YoY increase, while overall consumer financing grew 15% YoY to Rs997.9bn, SBP data showed.

SBP data showed Roshan Digital Accounts received $213m in inflows during December 2025, raising cumulative inflows to $11.7bn, while net repatriable liability increased by $43m to $2.23bn as $170m was repatriated or utilized locally.

Pakistan’s large-scale manufacturing output rose 10.37% YoY in November 2025, with LSMI growth led by automobiles, petroleum products and garments, lifting cumulative July–November FY26 growth to 6.01%, official data showed.

The SBP raised Rs546bn through its latest fixed-rate PIB auction, with cut-off yields ranging between 10.19% and 11%, as strong demand was seen for 3-year and 10-year bonds while bids for the 15-year zero-coupon bond were rejected.

The Pakistani rupee posted a slight appreciation against the US dollar during the week, strengthening to Rs279.95 per USD on January 16, 2026, compared to Rs280.02 a week earlier.

The continued stability in the exchange rate provided modest support to foreign investor returns and helped contain external volatility during the consolidation phase in equities.

Index Movers

Sector-wise performance was mixed, with Oil & Gas Exploration Companies emerging as the dominant driver of index gains, contributing a substantial 1,242 points, supported by strong upside in key exploration names.

This was followed by Commercial Banks, which added 163 points, while Property stocks contributed 75 points. Other notable positive contributors included Paper, Board & Packaging (+53 points), Automobile Parts & Accessories (+53 points), Textile Composite (+41 points), Oil & Gas Marketing Companies (+27 points), and Chemical (+22 points).

Additional support came from Refinery (+16 points), Cable & Electrical Goods (+15 points), and Real Estate Investment Trusts (+11 points).

On the downside, Fertilizer stocks emerged as the largest drag, shaving off 204 points, followed by Technology & Communication (-130 points), Pharmaceuticals (-129 points), Cement (-124 points), and Insurance (-110 points).

Further pressure was observed in Power Generation & Distribution (-58 points), Investment Banks / Investment Companies / Securities Companies (-56 points), Food & Personal Care Products (-53 points), and Automobile Assemblers (-62 points), which collectively capped broader market upside.

Scripwise, Oil & Gas Development Company Limited (OGDC) emerged as the single largest contributor to the KSE-100 Index, adding 789 points, followed by Pakistan Petroleum Limited (PPL) with 558 points.

Among banks, National Bank of Pakistan (NBP) added 213 points, while Askari Bank (AKBL) contributed 210 points, and Meezan Bank (MEBL) added 105 points.

Other notable gainers included Atlas Honda Limited (ATLH) (+144 points), Pakistan Telecommunication Company Limited (PTC) (+116 points), JDW Sugar Mills (JVDC) (+75 points), Nishat Mills Limited (NML) (+60 points), Pakistan State Oil (PSO) (+56 points), and FATIMA Fertilizer (+56 points).

On the downside, selling pressure was concentrated in heavyweight names, with Systems Limited (SYS) emerging as the largest laggard, shaving off 209 points.

This was followed by Fauji Fertilizer Company (FFC) (-184 points), United Bank Limited (UBL) (-180 points), MCB Bank (-164 points), and Sazgar Engineering Works (SAZEW) (-145 points).

Other notable drags included Adamjee Insurance (AICL), Engro Holdings (ENGROH), Lucky Cement (LUCK), HBL, Indus Motor (INDU), and Pakistan Elektron (PSEL), which collectively limited further upside in the index.

FIPI / LIPI Flows

From an investor flow perspective, foreign investors remained net sellers, with total FIPI outflows amounting to $10.78m during the week.

The selling was primarily driven by foreign corporates, which recorded net selling of $14.20m, while foreign individuals posted marginal net outflows of $0.01m. This was partially offset by overseas Pakistanis, who emerged as net buyers with inflows of $3.44m.

In contrast, local investors absorbed the entire foreign selling, as Local Institutional Portfolio Investors (LIPI) recorded net buying of $10.78m.

Buying was led by individual investors with net inflows of $16.09m, followed by mutual funds ($12.79m), companies ($6.59m), and broker proprietary trading ($5.28m). This was partially offset by net selling from banks/DFIs (-$23.50m) and insurance companies (-$15.84m), while NBFCs and other organizations provided marginal support.

Copyright Mettis Link News