Pakistan Market Wrap: Valuation Reality Check: Bulls Retreat Amid Intense Profit Taking – By HMFS Research
Feb 16 2026
HMFS Research
- The main bourse at the Pakistan Stock Exchange witnessed persistent selling pressure, extending the ongoing market downturn as investors gravitated towards profit-taking. Heightened offloading by institutional funds further accelerated the decline, with elevated valuations prompting investors to lock in gains accumulated during the recent rallies on the KSE-100 Index. The benchmark experienced a sharp intraday decline of 6,029 points before settling at 174,454, closing lower by 5,150 points at the end of the trading session. The prevailing bearish trend resulted in relatively subdued trading activity, with volumes clocking in at 379mn shares for the KSE-100 Index and 768mn shares in the overall market.
- Volume leaders for the day included KEL (64mn), WTL (62mn), and BOP (56mn). Looking ahead, market direction is expected to remain contingent upon the country’s broader macroeconomic trajectory and evolving geopolitical developments. Potential policy measures, including the government’s consideration of tax relief for the property sector and a support package for the textile industry, may provide some stability to the index. Nonetheless, in the current volatile environment, investors are advised to maintain a cautious and disciplined approach, avoiding panic-driven decisions while capitalizing on dip buying opportunities in fundamentally strong companies with sustainable growth potential.
