KARACHI: The Pakistan Stock Exchange (PSX) continued its historic rally on Monday, with the KSE-100 Index crossing the 183,000 level for the first time in intra-day trading, closing at 183,245 points, up 4,210 points (2.35%) by mid-afternoon. Market participants reported strong buying interest across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and power generation stocks. Heavyweights such as HUBCO, MARI, OGDC, POL, PPL, PSO, SNGPL, SSGC, HBL, MCB, MEBL, and UBL traded firmly in the green, further propelling the index.
Analysts attributed the rally to a combination of domestic and international factors. Sana Tawfik, Head of Research at Arif Habib Limited, said the start of the New Year has renewed investor confidence, especially among funds and institutional investors. Positive sectoral data, particularly from the fertiliser industry, has also bolstered market sentiment. Adding to optimism is the anticipation of a potential policy rate cut in the upcoming Monetary Policy Committee meeting scheduled for 26 January 2026, following the previous easing of interest rates.
The rally follows a strong week for the PSX, during which the KSE-100 gained 6,634 points (3.8%), closing at a fresh all-time high of 179,035 points. Analysts said the upswing reflects easing inflationary pressures, strong sectoral performance, and increased investor participation, highlighting renewed confidence in Pakistan’s equity market.
Globally, markets also showed resilience amid geopolitical developments. Asian stocks climbed, with Japan’s Nikkei 225 soaring 2.8% and South Korea’s Kospi and Taiwan indexes rising over 2%, as investors digested stabilising economic data. Meanwhile, China’s Hang Seng Index was relatively muted, dragged down by energy stocks, while Australian shares edged higher. Analysts noted that international sentiment is being shaped by US military activity in Venezuela, alongside key economic indicators expected this week.
Market observers say the PSX rally underscores the growing appeal of Pakistani equities, with investors keenly watching policy decisions, sectoral growth, and global economic trends as drivers for continued momentum in 2026.