The Pakistan Stock Exchange (PSX) has recorded a historic start to 2026, with the benchmark KSE-100 Index surging 13,707.37 points in just the first 19 trading days of the year, marking the strongest opening rally in recent history. The extraordinary bull run propelled the index to a new all-time high on Monday, closing at 187,761.69, up 2,662.86 points or 1.44%. This surpasses the previous peak of 186,518.72 set on January 7, 2026.
For context, the first 19 trading days of previous years saw far more modest gains: 2,432.7 points in 2020, 2,147.86 points in 2021, and 237.35 points in 2022. In contrast, 2023 experienced a sharp downturn with a loss of 1,588.9 points, while 2024 and 2025 posted gains of 831.19 and 145.18 points respectively. None of these compare to the 2026 rally, underscoring the exceptional start to the year.
The market advance was driven largely by stronger performance in mid-cap stocks, fueled by expectations of interest-rate reductions and a manageable current-account deficit. Investor optimism was further supported by speculation over potential debt restructuring and the possibility of more affordable financing through a panda bond issuance.
Domestically, the federal government’s decision to maintain fuel prices for the fortnight starting January 16, 2026, also buoyed market sentiment. High Speed Diesel remains priced at Rs257.08 per litre, while petrol continues at Rs253.17 per litre, easing concerns over immediate cost pressures on businesses and consumers.
International developments contributed positively as well. Concerns regarding potential US action against Iran diminished after Washington scaled back its military posture in the Middle East, withdrawing some personnel from regional bases. The easing of geopolitical tension helped reinforce investor confidence and market stability.
Market analysts attribute the historic surge to a combination of domestic policy support, stable macroeconomic indicators, and an encouraging global environment. The rally reflects both short-term speculative enthusiasm and longer-term confidence in Pakistan’s equity market fundamentals.
Overall, the PSX’s record-setting performance in the opening weeks of 2026 highlights renewed investor confidence and optimism regarding the financial and economic outlook, setting a positive tone for the remainder of the year.
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