Market sentiment strengthened by fresh buying and growing hopes of a policy rate cut in the upcoming announcement
On a monthly basis, the KSE-100 has rallied 6.62%, extending its calendar year-to-date gains to a strong 29.09%, while the fiscal year-to-date performance stands at 18.30%. PHOTO:FILE
Pakistan Stock Exchange (PSX) delivered a standout performance today as the benchmark index surged to a fresh all-time high and closed at a record level of 182,408 points, firmly holding above the 182,000 mark. Investor confidence remained strong throughout the session, keeping momentum decisively on the upside.
During the day, the index touched an intraday high of 183,964.37points, while the session low was recorded at 179,535.47points, reflecting healthy intraday activity amid a strong upward trend. Buying interest remained evident across key sectors, including automobile assemblers, cement, commercial banks, and oil & gas exploration companies, indicating broad-based participation.
Market sentiment was further supported by fresh buying at the start of the New Year and growing anticipation of a potential policy rate cut in the upcoming monetary policy announcement later this month, reinforcing the market’s overall bullish tone.
At close, the benchmark KSE-100 index jumped 3,373.31 points, or 1.88% and settled at 182,408.24.
“Investors are optimistic on expectation of further monetary easing driven by improving external account position and continuous focus on reforms amid political stability,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.
Subdued returns on alternative asset classes, coupled with a stronger currency, are expected to make equities the preferred investment choice in CY26, he said.
Ashraf anticipated the KSE-100 index to reach 263,800 by Dec’26, implying a return of 53.0%, or 48.4% in US dollar terms. This return positions the KSE-100 Index to reach a historic US$100bn market capitalization for the first time. He believed that improving relations with the U.S. and GCC countries will help revive investment in Pakistan.
JS Global Capital Head of Equity Research Waqas Ghani commented that the break above 180,000 reinforces “our view that improving macro stability and supportive valuations can sustain the rally.” He added that, though 2026 returns are likely to be driven more by stock selection, broad-based gains may be limited.
Topline Securities observed that the local bourse kicked off the New Year on a powerful note, as aggressive buying by local mutual funds set the tone for a decisive bullish session.
Optimism around a potential rate cut in the upcoming monetary policy meeting fuelled risk appetite, driving broad-based participation across the market. The benchmark index surged to an intraday high of 4,929 points before settling at 182,408, marking a robust gain of 3,373 points (up 1.88%). The strong close near the day’s peak underscored firm investor confidence and signalled a buoyant start to the year for equities.
Top positive contribution to the index came from United Bank, Habib Bank, Engro Holdings, , MCB Bank, Engro Fertiliser and Fauji Fertiliser, as they cumulatively contributed +1,853 points to the index, Topline added.
Overall trading volume increased to 1.38billion compared with 1.11billion from previous close. Value of traded shares stood at Rs78billion. Shares of 483 companies were traded. Of these, 256 closed higher, 197 declined and 30 remained unchanged. The Bank of Punjab was the volume leader with trading in 95.5million shares, gaining Rs0.76 to close at Rs43.09.
