Business
Pakistan’s stock market needs depth, not drama | The Express Tribune
With most gains driven by financials and energy giants, PSX lacks broad participation needed for durable bull run
KARACHI:
Pakistan’s stock market has been a study in contrasts this year: pockets of bullish enthusiasm punctuated by sharp swings that leave investors – and policymakers – uneasy. The benchmark KSE-100 index, which began 2025 on a recovery path after a turbulent 2024, has repeatedly tested new highs and then surrendered large chunks of gains within days, illustrating how sensitive the Pakistan Stock Exchange (PSX) has become to domestic policy cues, regional geopolitics, and global risk sentiment.
On October 24, 2025, the index traded around the mid-160,000s intraday, showing ranges that investors described as “wide” and “whippy” rather than steady appreciation. Volatility has not been purely technical; it has often been triggered by identifiable events.
In April 2025, trading was halted for 45 minutes after the KSE-100 plunged more than 5% in a single session as global risk aversion spiked and regional uncertainty rose – an episode that underscored how quickly sentiment can reverse even when fundamentals appear to be stabilising.
The market’s dependence on foreign portfolio flows, and its limited depth compared with larger emerging markets, means that short, concentrated flows can move prices dramatically.
Domestic macro policy has been another major driver of market moves. The State Bank of Pakistan (SBP)’s easing cycle through the first half of 2025, including rate cuts totalling several hundred basis points compared with 2024 peaks, supported a recovery in interest-sensitive sectors and encouraged risk appetite among local institutional investors.
But monetary easing also raised questions about inflation and currency stability, which, in turn, prompted profit-taking when headlines suggested rising external pressures or potential reversals in policy. That tug-of-war between easing for growth and guarding against macro risks has been priced into PSX volatility.
The market’s advances have been concentrated. Financials, selected energy names, and large exporters accounted for a disproportionate share of gains during rallies, while small-cap and mid-cap segments frequently lagged or underperformed during corrections. This concentration increases systemic volatility because heavy exposure to a few big names magnifies the effect of any negative news tied to those companies or sectors.
Even on days when the headline index gains, breadth often remains narrow – another red flag for investors seeking durable rallies. PSX market summaries and turnover statistics show recurrent patterns of heavy volume on a limited number of symbols.
Foreign investor behaviour has been decisive at turning points. Inflows associated with short-term hedge funds or opportunistic foreign portfolio investors have magnified rallies, but sudden stops or reversals – prompted by global events such as changes in US interest rate expectations or geopolitical flare-ups – have intensified declines.
Local institutional participation has grown but still struggles to fully offset the volatility imparted by cross-border capital. The exchange’s 2025 annual report and market data highlight both increasing market capitalisation and the still-fragile composition of flows.
Liquidity dynamics add another layer to the story. While market capitalisation has expanded in the past year, turnover ratios and average daily traded value show episodes of thin liquidity, especially outside the top 20 stocks.
Thin trading amplifies price moves: modest sell orders can cascade if buyers are scarce. Recent intraday ranges – sometimes exceeding several thousand index points – reflect that liquidity mismatch. For risk managers and retail investors, that means stop-losses and margin calls can be triggered more easily now than in a deep, liquid market.
Geopolitical shocks have repeatedly convulsed the PSX. In months when regional tensions flared, the index suffered steep sell-offs and occasionally triggered cooling mechanisms or temporary halts; conversely, diplomatic breakthroughs or easing of tensions sparked quick recoveries and short squeezes.
The market’s sensitivity to such events is understandable – exporters, commodity prices, and investor confidence all react to geopolitical shifts – and it has made calendar risk a permanent feature of the PSX investment playbook.
Macro data and external account developments feed into market psychology as well. Pakistan’s trade deficits, remittance trends, and foreign exchange reserves are monitored closely by investors, and any sign of deteriorating external buffers tends to coincide with domestic equity sell-offs.
While policy actions – tariff adjustments, fiscal consolidation measures, or SBP interventions – may eventually stabilise macro variables, the market often reacts to the perceived probability and timing of those measures long before their economic impact is visible. Official monthly KSE indicators compiled by the SBP and PSX show how closely market moves track macro announcements.
Investor composition has evolved. Retail participation has risen alongside digital access to trading, while institutional investors – including pension funds and mutual funds – have steadily increased their presence. This democratisation brings both benefits – a broader investor base and deeper domestic pools of capital – and risks, as less-experienced retail investors can exacerbate momentum trading during both rallies and panics.
Education, stricter disclosure standards, and improved investor protection are therefore essential complements to any structural reform aimed at calming volatility.
Regulatory responses so far have been pragmatic but reactive. The PSX and the Securities and Exchange Commission of Pakistan (SECP) have used circuit breakers, trading halts, and disclosure requirements to limit disorderly moves, but long-term solutions require deeper structural changes.
These include broadening the investor base through institutional development, improving corporate governance, enhancing market infrastructure to reduce settlement and operational risk, and encouraging product innovation – such as derivatives and options – that allow for hedging of market and currency risk.
PSX’s 2025 initiatives around new index products and market data aim in that direction, but their stabilising impact will accrue only over time.
Volatility on the PSX is likely to persist – at least in the near term – because the market sits at the intersection of domestic policy shifts, lingering external vulnerabilities, and an increasingly connected global capital market where sentiment moves fast. That does not mean the PSX cannot offer attractive returns. Rather, it implies that returns will be accompanied by higher realised volatility, and that success will depend on both macro stability and deepening of market structures.
Policymakers, regulators, and market participants all have a role to play: improving transparency, nurturing local institutional capacity, and upgrading infrastructure will be the difference between a market that remains chronically volatile and one that evolves into a resilient and investor-friendly marketplace.
THE WRITER IS A MEMBER OF PEC AND HOLDS A MASTER’S DEGREE IN ENGINEERING
Business
Piyush Goyal Dismisses Rahul Gandhi’s Farmer Meet Video, Rebuts ‘Fake Narrative’ On India-US Trade Deal
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The minister offered a detailed reality check to counter what he termed ‘Rahul ji’s fakery’
Goyal reiterated that Prime Minister Narendra Modi’s policies are intrinsically linked to farmer welfare. (File Photo: PTI)
Union Commerce Minister Piyush Goyal has accused Congress leader Rahul Gandhi of orchestrating a “fake narrative” aimed at provoking India’s farming community. Responding to a video released on social media by the Leader of the Opposition on Friday, Goyal dismissed the interaction as a stage-managed performance featuring Congress activists masquerading as genuine farmer leaders. He asserted that the dialogue followed a predetermined script designed to mislead the public regarding the safeguards in the recent India-US trade deal.
Rahul Gandhi has alleged that “any trade deal that takes away the livelihood of farmers or weakens the food security of the country is anti-farmer”. He was pointing to the recently concluded India-US framework agreement for bilateral trade, which is expected to be signed after tweaks by the end of March.
Piyush Goyal offered a detailed reality check to counter what he termed “Rahul ji’s fakery”, placing on record that the Narendra Modi government has fully protected the interests of annadatas, fishermen, MSMEs, and artisans. The minister categorically clarified that sensitive crops like soyameal and maize have been granted no concessions whatsoever in the agreement, ensuring that domestic farmers remain shielded from competitive pressure. He criticised the opposition for repeating “baseless allegations” in an attempt to instill unnecessary fear among the rural population.
Addressing specific claims regarding apple and walnut imports, the minister provided a technical breakdown of the protectionist measures in place. He noted that while India already imports approximately 550,000 tonnes of apples annually due to high domestic demand, the new US deal does not allow unlimited entry. Instead, a strict quota has been established, far below current import levels, and subject to a Minimum Import Price (MIP) of Rs 80 per kg. With an additional duty of Rs 25, the landed cost of US apples will be roughly Rs 105 per kg—significantly higher than the current average landed cost of Rs 75 per kg from other nations—thereby ensuring Indian growers are not undercut. Similarly, for walnuts, the US has been offered a modest quota of 13,000 metric tonnes against India’s total annual import requirement of 60,000 metric tonnes, making it impossible for the deal to harm local producers.
Goyal also took a swipe at the historical record of the Congress party, pointing out the irony of its current stance. He reminded the public that during the Congress-led UPA era, India imported nearly $20 billion worth of agricultural products, including dairy items, which the current administration has strictly excluded from the US pact. He challenged Rahul Gandhi to explain his “betrayal of farmers” and questioned how much longer the opposition intended to peddle fabricated stories.
Concluding with the slogan “Kisan Surakshit Desh Viksit”, Goyal reiterated that Prime Minister Narendra Modi’s policies are intrinsically linked to farmer welfare. He maintained that the India-US agreement is a balanced framework that opens new markets for Indian exports like basmati rice and spices while keeping the nation’s agricultural backbone secure.
February 14, 2026, 05:29 IST
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Business
Without Rera data, real estate reform risks losing credibility: Homebuyers’ body – The Times of India
New Delhi: More than 75% of state real estate regulators, Reras, have either never published annual reports, discontinued their publication or not updated them despite statutory obligation and directions from the housing and urban affairs ministry, claimed homebuyers’ body FPCE on Friday. It released status report of 21 Reras as of Feb 13.The availability of updated annual reports is crucial as these contain details of data on performance of Reras, including project completion status categorised by timely completion, completion with extensions, and incomplete projects. The ministry’s format for publishing these reports also specifies providing details such as actual execution status of refund, possession and compensation orders as well as recovery warrant execution details with values and list of defaulting builders.FPCE said annual report data is not only vital for homebuyers to assess system credibility, but is equally necessary for both state and central govts to frame effective policies, design incentivisation schemes, and develop tax policy frameworks.“Unless we have credible data proving that after Rera the real estate sector has improved in terms of delivery, fairness, and keeping its promises, we are merely firing in the air,” said FPCE president Abhay Upadhyay, who is also a member of the govt’s Central Advisory Council on Rera.As per details shared by the entity, seven states — Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Himachal Pradesh and Goa — have never published a single annual report since Rera’s implementation, and nine states, including Maharashtra, Uttar Pradesh and Telangana, which initially published reports, have discontinued the practice.Upadhyay said when regulators themselves don’t follow the law, they lose the legal right to demand compliance from other stakeholders. “Their failure emboldens builders and weakens the very system they are meant to safeguard,” he said.
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Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.
Infosys logo is seen.
IT major Infosys rolled out performance bonus payouts averaging around 85 percent for the quarter ended December 31, 2025 (Q3FY26), marking the strongest variable pay outcome for eligible employees in at least the past three-and-a-half years, Moneycontrol reported citing people in the know.
The bonus payout for mid- to junior-level employees ranges between 75 percent and 100 percent, with most employees clustering around the organisation-wide average of 85 percent, the report said. The development signals a steady recovery in variable compensation at the Bengaluru-headquartered IT services firm. Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.
Employees are expected to receive their bonus letters over the next few days, with the payout scheduled to be credited along with their February salary.
One employee told the outlet that it is the strongest bonus outcome seen in recent years. The payout is also among the rare instances since the Covid-19 period when variable pay has approached the upper end of the eligible range.
Infosys last paid out 100 percent variable compensation during the pandemic. In the quarters that followed, payouts were lower amid macroeconomic uncertainty and a broader slowdown in client spending across global markets.
The higher payout comes at a time when global IT stocks have faced renewed pressure, driven by concerns over rapid advances in artificial intelligence and their potential impact on traditional IT services models.
Shares of global IT firms have seen sharp sell-offs in recent weeks amid heightened investor focus on AI leaders such as Anthropic. Investors fear that generative AI tools could compress pricing, automate routine services work and reduce demand for legacy outsourcing models.
Against that backdrop, the improved bonus payout at Infosys is being viewed as a signal of operational resilience and near-term performance strength, even as sentiment around the broader IT sector remains cautious.
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February 13, 2026, 21:44 IST
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