Pakistan’s stock market experienced a mixed session on January 26, 2026, with initial declines partially offset by gains in select heavyweights, ultimately closing with a modest increase.The benchmark KSE-100 index rose by 188.73 points, or 0.32%, to close at 58,747.83, according to data from the Pakistan Stock Exchange (PSX). The market’s recovery was largely attributed to positive contributions from Millat Tractor, Javedan cement, and Fauji Fertiliser.
Pakistan Stock Exchange (PSX) Performance
The KSE-100 index initially faced downward pressure, but gains in key sectors helped mitigate losses.Millat Tractor, Javedan Cement, and Fauji Fertiliser collectively added 401 points to the index, preventing a more significant decline. The PSX reported a trading volume of 867.07 million shares,with a traded value of Rs57.1 billion.
Example: On January 26, 2026, Millat Tractor closed at Rs345.20 per share, contributing substantially to the index’s positive movement. Millat tractor Limited - PSX
State Bank of Pakistan (SBP) Monetary policy Decision
The State Bank of Pakistan’s (SBP) decision to maintain the status quo on key interest rates was perceived negatively by market participants. This decision, announced on January 26, 2026, surprised analysts who had anticipated a potential rate adjustment.
Detail: The SBP’s Monetary Policy Committee (MPC) met on january 26, 2026, and decided to keep the policy interest rate unchanged at 22%. SBP Monetary Policy Press Release - January 26, 2026. This decision was made despite persistent inflationary pressures and concerns about economic growth.
Example: The SBP’s decision to hold rates steady contrasts with previous rate hikes in November 2023 and June 2023,aimed at curbing inflation. SBP Monetary Policy History
Market Outlook and Support Levels
Analysts predict potential selling pressure in the near term following the SBP’s decision. Though, they identify a key support level at 18,500, which is expected to limit further declines.
Detail: The 18,500 level represents a critical technical support point for the KSE-100 index, based on historical trading patterns and chart analysis.A breach of this level could trigger further selling and a more pronounced market correction.
example: According to a report by Topline Securities, the KSE-100 index has consistently found support around the 18,500 level during previous market downturns. (Source: Topline Securities Research – January 27, 2026 – *Note: Direct link to report unavailable; information based on general market analysis from the firm*).
Published in Dawn, January 27th, 2026
