Karachi: The KSE-100 index continued its upward trajectory, starting the new year with a robust rally, closing at a record 179,034 points, marking a 4% increase on a weekly basis. The rally was widespread, with significant contributions from the banking sector, which accounted for 45% of the gains, followed by exploration and production companies at 18%, and the fertilizer sector at 13%.

Market activity showed notable improvement, with average daily turnover rising by 41% compared to the previous week. According to the National Accounts Committee, Pakistan's economy grew by 3.71% in the first quarter of the fiscal year 2026, spurred by a 9.38% year-on-year increase in industrial output. The agriculture and services sectors also reported growth, at 2.89% and 2.35% year-on-year, respectively.

In December 2025, the consumer price index (CPI) recorded a 5.6% increase, registering a 0.5% month-on-month decline. On the external economic front, the trade deficit widened to $3.7 billion in December 2025, a 24% increase from the previous year. This rise primarily reflected a 20% year-on-year decrease in exports, while imports increased by 2%. The cumulative trade deficit for the first half of fiscal year 2026 reached $19.2 billion, a 35% increase year-on-year.

In corporate developments, PTCL completed the acquisition of Telenor Pakistan and Orion Towers, marking a significant consolidation move in the telecommunications sector. Meanwhile, foreign exchange reserves remained stable, with the State Bank of Pakistan reporting reserves of $15.91 billion.