Pakistan Stock Exchange delivered one of its strongest performances to date as the benchmark KSE-100 index surged to a new all-time high and closed at a record level of 182,408 points. The index firmly held above the 182,000 mark throughout the session, signaling sustained investor confidence and reinforcing the market’s strong upward trajectory at the start of the New Year.
The trading session witnessed active participation and healthy volatility. During the day, the index touched an intraday high of 183,964.37 points, while the session low was recorded at 179,535.47 points. Despite these swings, the broader trend remained decisively positive, indicating that buying interest outweighed profit-taking across the board. Market participants pointed to improved sentiment and renewed optimism as key drivers behind the rally.
Buying activity remained broad-based, with strong contributions from automobile assemblers, cement manufacturers, commercial banks, and oil and gas exploration companies. The participation of multiple sectors highlighted that the rally was not limited to a narrow segment of the market but was instead supported by a wide range of industries. This pattern is often seen as a sign of deeper market confidence rather than short-term speculative activity.
Investor sentiment was further supported by fresh inflows at the beginning of the calendar year and growing anticipation of a potential policy rate cut in the upcoming monetary policy meeting later this month. Expectations of monetary easing have strengthened in recent weeks amid signs of improving macroeconomic stability, better external account dynamics, and easing inflationary pressures. These factors collectively reinforced the bullish tone seen during the session.
By the close of trading, the KSE-100 index had gained 3,373.31 points, or 1.88 percent, settling at 182,408.24 points. Market analysts noted that such a strong close near the day’s peak reflects confidence among investors in the market’s near-term direction. According to AKD Securities Director Research Mohammed Awais Ashraf, optimism is being driven by expectations of further monetary easing, supported by an improving external account position and continued focus on economic reforms amid relative political stability.
He added that subdued returns on alternative asset classes, along with a stronger local currency, are likely to make equities a preferred investment choice during calendar year 2026. Ashraf projected that the KSE-100 index could reach 263,800 points by December 2026, implying a potential return of around 53 percent, or 48.4 percent in US dollar terms. Such growth would place the index on track to achieve a historic market capitalization of US$100 billion for the first time. He also noted that improving relations with the United States and Gulf Cooperation Council countries could help revive foreign investment inflows into Pakistan.
JS Global Capital Head of Equity Research Waqas Ghani observed that the decisive break above the 180,000 level reinforces the view that improving macro stability and supportive valuations can sustain the market rally. However, he cautioned that returns in 2026 may increasingly depend on stock-specific fundamentals, with broader market gains potentially becoming more selective.
Topline Securities highlighted that aggressive buying by local mutual funds played a key role in setting the tone for the session. Optimism around a potential policy rate cut fueled risk appetite, leading to strong participation across the market. According to the brokerage, the index surged by as much as 4,929 points intraday before closing at 182,408, marking a robust gain and signaling a confident start to the year.
Top positive contributions to the index came from United Bank, Habib Bank, Engro Holdings, MCB Bank, Engro Fertiliser, and Fauji Fertiliser, which together added 1,853 points to the benchmark. Overall trading volume increased to 1.38 billion shares compared with 1.11 billion shares in the previous session, while the value of traded shares stood at Rs78 billion. Shares of 483 companies were traded, with 256 closing higher, 197 declining, and 30 remaining unchanged. The Bank of Punjab led volumes, with 95.5 million shares traded, closing at Rs43.09 after gaining Rs0.76.
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