The Pakistan Stock Exchange (PSX) experienced a robust opening on December 26, 2025, following a holiday closure on Christmas Day. The benchmark KSE-100 Index surged by nearly 1,200 points in the morning session, reflecting renewed investor confidence amid global market trends and domestic economic signals. This gain comes after a slight dip earlier in the week, highlighting the market’s resilience in a roll-over period typically marked by caution.
Background:
The KSE-100, introduced in 1991, serves as the primary gauge of Pakistan’s equity market performance, comprising the top 100 companies by market capitalization on the PSX. Over the past year, the index has navigated volatility driven by factors like inflation, interest rate adjustments by the State Bank of Pakistan, and geopolitical tensions. In 2025, the economy showed signs of recovery with GDP growth projected at 3.5%, supported by IMF-backed reforms and increased remittances. However, challenges such as energy shortages and fiscal deficits have periodically pressured stocks. The previous trading day on December 24 saw the index close down 0.14% at 170,830.22 points due to selective selling in heavyweights. Today’s rally, pushing the index to 172,008.63 by midday, is attributed to buying in blue-chip sectors, buoyed by positive Asian market cues where indices like Japan’s Topix hit record highs
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Sector-Wise Performance Boosts Momentum
Key sectors including automobile assemblers, cement, commercial banks, fertilizers, oil and gas exploration, oil marketing companies (OMCs), and refineries led the charge. Index-heavy stocks such as Attock Refinery (ARL), Pakistan Refinery (PRL), Hub Power (HUBCO), Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Petroleum (PPL), Pakistan State Oil (PSO), Wah Noble (WAFI), Habib Bank (HBL), MCB Bank (MCB), and National Bank of Pakistan (NBP) all traded in positive territory. This broad-based buying indicates investor bets on improving corporate earnings and potential policy easing in the new year.
Global Influences and Future Outlook
Internationally, Asian stocks reached six-week highs, with South Korea’s benchmark up 72% annually and China’s blue-chips gaining 18%. A softer yen and precious metals rally added to the risk-on sentiment, spilling over to emerging markets like Pakistan. Analysts suggest this intra-day strength could sustain if trading volumes rise, though thin liquidity due to holidays in Europe and parts of Asia might cap gains. With the PSX’s BR100 up 0.74% and BR30 surging 1.17%, the market appears poised for a positive close to 2025, potentially setting the stage for continued growth in 2026 amid stabilizing macroeconomic indicators.