KARACHI, February 18, 2026 – The Pakistan Stock Exchange (PSX) staged a sharp recovery on Wednesday, led by heavy buying in banking and fertiliser stocks. The benchmark KSE-100 index jumped 5,702.68 points, gaining 3.29 percent to close at 178,853.10.
Investors responded positively to strong corporate earnings, particularly from the banking sector. Habib Bank announced impressive results along with a Rs6 per share dividend, boosting confidence across the banking industry and encouraging renewed buying activity.
Trading remained volatile, with the index swinging between 174,328.61 and 178,974.17 during the session. Market analysts noted that improving financial fundamentals and strong institutional participation helped drive the rally after previous weak sessions caused by margin pressures and political uncertainty.
KTrade Securities highlighted that the rebound was broad-based, with banks and fertiliser companies leading the surge. The market saw aggressive covering as investors regained confidence in Pakistan’s corporate sector.
Overall trading volume on the PSX decreased slightly to 697.6 million shares, with a total market value of Rs49.9 billion. Shares of 484 companies were traded, among which 334 closed higher, 103 fell, and 47 remained unchanged. K-Electric topped the volume chart with 117 million shares traded, rising Rs0.57 to close at Rs8.39.
Market experts say the sustainability of this rally will depend on continued liquidity, clarity in the political landscape, and ongoing strong corporate results. The banking sector, in particular, will remain a key driver of market momentum.
If corporate earnings remain supportive and investor confidence continues, analysts predict that PSX could maintain its bullish trend in the near term.
In other news read more about PSX Starts Week Lower, Drops Over 2,200 Points Amid IMF Talks
The surge in banking stocks demonstrates the growing importance of financial institutions in shaping overall market performance. Investors will continue to watch corporate updates closely, especially from major banks, as a measure of market health.
