KSE-100 Drops Over 1,300 Points as Banking, Oil Stocks Drag PSX Lower

The benchmark KSE-100 Index at the Pakistan Stock Exchange witnessed a sharp decline on tuesday, February 17, 2026, as heavy selling in banking and oil sector stocks pushed the market deep into negative territory. The index closed at 173,150.42 points, shedding 1,303.52 points, reflecting a loss of 0.75 percent during the session.
The trading day began on a relatively stable note, with the KSE-100 opening at 174,783.15 points. Early momentum drove the index to an intraday high of 176,131.35 points, indicating initial investor optimism. However, the bullish sentiment quickly faded as profit-taking intensified across major sectors. The index later touched an intraday low of 171,693.40 points before slightly recovering toward the close.
Market analysts attributed the decline primarily to significant pressure in heavyweight stocks. Pakistan State Oil (PSO) emerged as the top dragger, wiping out 209.89 points from the index. Habib Bank Limited (HBL) followed closely, contributing a negative 174.81 points. Engro Holdings, United Bank Limited (UBL), and National Bank of Pakistan (NBP) also weighed heavily on the benchmark, highlighting widespread weakness in the banking and energy sectors.
Despite the downturn, select exploration and production stocks provided some support. Oil and Gas Development Company (OGDC) added 179.09 points, leading the gainers’ list. Pakistan Petroleum Limited (PPL) contributed 87.35 points, while Millat Tractors (MTL), Bank of Punjab (BOP), and Mari Petroleum (MARI) also posted positive contributions.
Trading activity remained robust, with index constituent volume recorded at 424.96 million shares, reflecting strong investor participation despite the bearish trend. The session’s volatility suggests ongoing repositioning by institutional investors amid evolving macroeconomic conditions.
On a fiscal year-to-date (FYTD) basis, the KSE-100 still maintains an impressive gain of 37.83 percent, underscoring the broader rally witnessed over recent months. However, the calendar year-to-date (CYTD) performance stands at negative 0.52 percent, signaling short-term market corrections at the start of 2026.
Market experts believe the recent pullback is largely technical, driven by profit-booking after extended gains. Investors are now closely monitoring economic indicators, interest rate expectations, and global commodity prices for directional cues.
Overall, today’s session at the Pakistan Stock Exchange reflects cautious sentiment, with sector-specific pressures overshadowing gains in exploration stocks. Analysts suggest that selective buying in fundamentally strong shares could emerge if volatility stabilizes in upcoming sessions.