The Pakistan Stock Exchange (PSX) continued its unstoppable rally into 2026, with the benchmark KSE-100 Index crossing the historic 179,000 level for the first time on January 2. The index reached an intra-day high of 179,016.88 during the morning session, reflecting unwavering investor confidence amid improving macroeconomic indicators.
Broad-Based Buying Across Key Sectors
Buying interest remained strong across multiple sectors, including automobile assemblers, cement, commercial banks, fertilisers, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries. Index-heavy stocks such as HUBCO, Attock Refinery (ARL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Petroleum (PPL), Pakistan Oilfields (POL), Pakistan State Oil (PSO), Habib Bank (HBL), National Bank (NBP), and United Bank (UBL) traded firmly in positive territory, contributing significantly to the upward push.
By midday, the KSE-100 was trading at 178,504.34, marking a gain of 2,148.85 points or 1.22%. This followed a robust close on January 1, where the index added 2,301.17 points to end at 176,355.49, kicking off the new year on a high note.
The rally is underpinned by easing inflation, with December 2025 headline inflation at 5.6% year-on-year, aligning with Ministry of Finance projections. Stable foreign exchange reserves at around $21 billion further bolster sentiment. Analysts attribute the surge to broad-based institutional buying and optimism over sustained economic stability.
Global markets provided a supportive backdrop, with Asian indices posting gains despite holiday-thinned trading. The PSX’s performance highlights Pakistan’s equity market resilience, positioning it as one of the top performers regionally.
As bulls dominate, market participants anticipate further milestones, though caution against potential profit-taking in the near term.