KEY POINTS
- Pakistan’s benchmark share index closes at fresh all-time high for fourth consecutive session
- Market has gained more than 12,000 points in first five trading days of 2026
- Rally driven by domestic institutional inflows and expectations of monetary easing
ISLAMABAD: Pakistan’s stock market extended its record-breaking rally for a fourth consecutive session on Wednesday, as sustained buying by domestic institutional investors pushed the benchmark index to a new all-time high, underscoring strong momentum at the start of 2026.
The benchmark KSE-100 Index, which tracks the largest companies listed on the Pakistan Stock Exchange (PSX), closed at 186,518.71 points, up 1,456.61 points, or 0.79%, from the previous session.
The latest close follows a sharp gain a day earlier, when the index crossed the 185,000-point threshold for the first time in its history.
During Wednesday’s session, the index slipped briefly in early trade, touching an intraday low of 184,896.70 points, before staging a broad-based recovery.
Buying interest strengthened through late morning and early afternoon, lifting the index to an intraday high of 187,015 points before it eased slightly into the close.
Market participants said optimism continues to be fuelled by expectations of an interest-rate cut at the upcoming meeting of the State Bank of Pakistan’s Monetary Policy Committee later this month.
Easing inflation and declining yields on fixed-income instruments have prompted investors to rotate capital into equities.
In a post-market note, brokerage firm Topline Securities said the bullish sentiment has carried decisively into the new year, with the benchmark index gaining 12,464 points, or 7.2 per cent, in the first five trading sessions of 2026.
The rally is being driven largely by aggressive buying from domestic institutional investors, particularly mutual funds and insurance companies, as asset allocation continues to shift away from fixed-income products amid softer returns.
Stocks contributing most to Wednesday’s gains included Hub Power Company, Pakistan Petroleum Limited, Engro Holdings, MCB Bank, and Meezan Bank, which together added around 766 points to the index.
The strong advance builds on momentum from Tuesday’s session, when the KSE-100 Index had surged by 2,653.87 points, or 1.45%, to close at 185,062.10 points.
That rally marked the first time the benchmark crossed the 185,000-point level, highlighting the scale of the market’s early-year rebound.
Tuesday’s session also saw United Bank Limited emerge as Pakistan’s largest listed company by market capitalisation, overtaking Oil and Gas Development Company Limited.
UBL’s market value rose above Rs 1.29 trillion, equivalent to approximately $4.6 billion, reflecting strong investor interest in banking stocks amid expectations of improved earnings and balance-sheet strength.
Since the start of 2026, Pakistan’s equity market has gained more than 10,000 points, with broad-based institutional buying lifting major sectors and reinforcing investor confidence.
Analysts say the rally reflects improving macroeconomic indicators, relative currency stability, and anticipation of major corporate earnings announcements due later this week.
Mixed global market cues
Declining oil prices and gains in commodity-linked stocks influenced Asian equities, as investors assessed political developments in Venezuela and uncertainty surrounding its petroleum exports.
Oil prices extended losses after US President Donald Trump said Venezuela would release up to 50 million barrels of crude for sale at market prices following political upheaval.
Japan’s Nikkei index slipped 0.25 per cent, weighed down by geopolitical tensions after China announced restrictions on exports of certain dual-use items to Japan.
Australia’s S&P/ASX 200 index rose 0.3 per cent, supported by higher commodity prices following a surge in industrial metals.
Back in Pakistan, the rupee recorded a marginal gain against the US dollar in the interbank market, closing at 280.06, up by Rs 0.01.
Local stock market’s trading volumes remained elevated on Wednesday. Volume on the all-share index rose to 1.33 billion shares from 1.31 billion in the previous session, while the value of shares traded increased to Rs 86.59 billion from Rs 85.32 billion.
K-Electric led volumes with 77.89 million shares, followed by Hascol Petroleum with 58.65 million shares and Bank of Punjab with 54.53 million shares.
A total of 486 companies were traded during the session. Of these, 299 stocks closed higher, 161 declined, and 26 remained unchanged, reflecting broad-based participation in the rally.
