Karachi: The stock market experienced a bearish trend this week, driven primarily by investor concerns over political developments and recent domestic security incidents. These factors, along with a delay in the financial close of the Reko Diq project, significantly impacted the Oil & Gas sector, which saw the largest index point decline. The benchmark index fell by 4,526 points, or 2.5% week-on-week, closing at 179,604 points.

According to AKD Securities Limited, despite the bearish trend, some supportive macroeconomic developments provided partial relief. These included a budget surplus of PKR 542 billion, equivalent to 0.4% of GDP in the first half of fiscal year 2026, compared to a deficit of PKR 1.5 trillion in the same period last year. Additionally, worker remittances rose by 15% year-on-year to $3.5 billion in January 2026, and auto sales reached a 43-month high.

The February 2026 MSCI Index review saw ABOT removed from the FM Index, while SEPL and ZAL were added to the MSCI FM Small Cap Index, with LPL being removed. Market participation increased, as average daily traded volume rose by 8% week-on-week to 1.1 billion shares from 983 million shares the previous week. Furthermore, the State Bank of Pakistan's foreign exchange reserves increased by $21 million week-on-week, reaching $16.2 billion as of February 6th. On the currency front, the Pakistani rupee appreciated by 0.03% against the US dollar, closing the week at 279.62 PKR/USD.