The Pakistan Stock Exchange (PSX) has experienced a significant correction in February 2026, with the benchmark KSE-100 Index shedding approximately 17,000 points (around -9%) from its all-time peak in January 2026.
The index hit a record high of 191,032.73 points in late January, amid a strong bull run earlier in the year, but has since declined sharply due to persistent selling pressure.
As of February 19, 2026 (close), the KSE-100 settled at 172,170.29 points, reflecting a steep single-day drop of 6,683 points (-3.74%)—marking one of the largest point declines in PSX history.
This was driven by heightened geopolitical risks, rising global oil prices, institutional redemptions, and increased risk aversion among investors.
The slide has erased substantial market capitalization (e.g., over Rs700 billion in the latest major session) and impacted key sectors heavily.
According to the JS Global research report (REP-084, dated February 20, 2026), the major laggard sectors contributing to the index’s decline since the January peak include:
Fertilizer: -3,934 points (-23.2% contribution)
Commercial Banks: -2,819 points (-16.6%)
Oil & Gas Exploration Companies: -2,812 points (-16.5%)
Cement: -2,092 points (-12.3%)
Oil & Gas Marketing Companies: -998 points (-5.9%)
The top laggard stocks dragging the index down were led by Fauji Fertilizer Company Ltd (-2,826 points, -16.6% contribution), followed by Pakistan Petroleum Ltd, Oil & Gas Development Company Ltd, Engro Fertilizers Ltd, and others in energy, cement, and power sectors.
Waqas Ghani Kukaswadia, Research Head at JS Global, commented: “The move was triggered by heightened geopolitical risks, which weakened sentiment and raised risk aversion.
This was then exacerbated by higher redemptions triggering institutional selling. Now, drawdowns of this scale are uncomfortable but they are a part of market normalization after a strong rally.
Focus should be less on the sell-off itself and more on whether earnings momentum and macro stability remain intact.”
Despite the recent volatility—including multiple sharp daily drops in mid-to-late February—the index remains significantly higher year-over-year (around +50% in some comparisons), reflecting the broader positive momentum from 2025-early 2026 before this normalization phase.