Karachi: The stock market witnessed an upward trajectory this week, with the KSE100 index climbing 4,068 points or 2.2% to reach a record high of 189,167 points. Market participation saw a boost with average daily traded volume increasing to 1.3 billion shares, up from 1.2 billion shares in the previous week.

According to AKD Securities Limited, the positive momentum was aided by easing geopolitical tensions and a decline in Treasury bill yields to single-digit levels, marking the first time in four years. The yields for 1, 3, 6, and 12-month papers decreased by 30, 25, 21, and 16 basis points, respectively, compared to the last auction. Additionally, favorable meetings with China, the United States, the United Kingdom, and Saudi Arabia to enhance economic partnerships contributed to the market's confidence.

On the macroeconomic front, the current account deficit for December 2025 stood at $244 million, while foreign direct investment outflows were reported at $135 million. Power generation saw an 8.8% year-on-year increase in December 2025, and the information technology sector achieved record monthly exports of $437 million, an increase of 26% year-on-year. Furthermore, the State Bank of Pakistan's foreign exchange reserves rose by $16 million week-on-week, closing at $16.1 billion as of January 16. In currency movements, the Pakistani Rupee appreciated by 0.03% against the US dollar, ending the week at 279.86 PKR/USD.