KEY POINTS
- Benchmark KSE-100 Index ends the session at a new closing high of 173,896.34 points, up 0.87%
- Market performance reflects improved sentiment and expectations of UAE investment
- Investor base rises to over 450,000 (+37% in 18 months)
- PSX remains among the strongest-performing emerging markets in 2025
ISLAMABAD: Pakistan’s stock market extended its rally on Monday as the benchmark KSE-100 Index closed at a fresh all-time high of 173,896.34 points, marking a gain of 1,495.61 points, or 0.87%.
The index surged to an intraday high of 174,411.72 points before undergoing a brief period of profit-taking, highlighting strong investor confidence.
Unlike the usual year-end sluggishness, the equities market opened the week on a bullish note, setting the tone for 2026.
Broad-based buying across the banking, energy and fertiliser sectors drove the session, supported by optimism over macroeconomic stabilisation, easing inflationary pressures and expectations of policy continuity.
Banking and financial stocks remained at the forefront of the advance, while energy and fertiliser shares also contributed to the index’s upward momentum.
Analysts noted that part of the rally was influenced by expectations of UAE investment, including the proposed acquisition of Fauji Foundation shares.
The market recovered from an intraday low of 173,200 points and traded within a narrow range for the remainder of the session, indicating healthy trading volumes and sustained participation from both institutional and retail investors.
Finance Advisor Khurram Schehzad highlighted that PSX delivered over 50% returns in US dollar terms in 2025, and the investor base expanded by more than 120,000 in the last 18 months to exceed 450,000, a 37% increase, reflecting growing domestic confidence.
From an international perspective, PSX has emerged as one of Asia’s best-performing equity markets this year.
Analysts cite sustained macroeconomic reforms, improved liquidity, and foreign exchange stability as key contributors.
Regional peers also showed strong performance, with MSCI Asia-Pacific up 0.27%, South Korea’s Kospi rising 1.5%, and Taiwan stocks reaching record highs, while Japan’s Nikkei slipped 0.4%.
Looking ahead, analysts caution that maintaining momentum will depend on continued progress in economic reforms, fiscal discipline, and clarity on policy direction.
Even so, the market’s latest performance underscores a notable shift in sentiment toward Pakistani assets as the country enters the new year.
