The Pakistan Stock Exchange (PSX) experienced its first corrective session of the new year on Thursday, as investors engaged in profit-taking following a blistering 12,464-point rally across the initial five trading days of 2026. The KSE-100 Index closed lower at 185,543, down 976 points (-0.52%).

During the session, investors opted for profit realization after the recent strong run-up, saidAli Najib, Deputy Head of Trading at Arif Habib Ltd. The benchmark index initially touched an intraday high of 187,905 (+1,386 points; +0.74%); however, selling pressure at higher levels erased earlier gains, dragging the market into negative territory by close.

On the diplomatic front, Pakistan and Saudi Arabia are reportedly in discussions to convert approximately $2 billion of Saudi loans into a fighter jet deal, limited to the provision of JF-17 Thunder aircraft. The total deal size is estimated at $4 billion, with an additional $2 billion earmarked for equipment beyond the loan conversion.

From a sectoral perspective, the government plans to deregulate the sugar sector as part of structural reforms agreed with the IMF.

Heavyweight stocks namely ENGROH, UBL, MEBL, SYS, and PPL, faced notable selling pressure, collectively shaving 986 points off the index.

Despite the decline, market activity remained robust, with traded volume exceeding 1.4 billion shares and market turnover reaching Rs90.9 billion. AGHA led the volume chart, with 131.8 million shares traded.

As the market heads into the final session of the week, further downside cannot be ruled out, with the 184–185k zone likely to act as the first support level.