Pakistan’s stock market opened the final week of the year on a strong note, with the KSE-100 Index surpassing the 174,000 mark during Monday’s early trading.
This happened as optimism over a potential United Arab Emirates (UAE) investment in Fauji Foundation, along with a $1 billion rollover liability settlement, boosted investor sentiment and pushed the market to a new all-time intraday high.
The benchmark displayed robust momentum throughout the session, reaching an intra-day high of 174,411.72 points. By 11:30am, it was trading around 173,669.86, up 1,269.13 points or 0.74% from the previous close.
Investor demand was particularly visible in major sectors, including automobile assemblers, cement, commercial banking, fertilisers, oil and gas exploration, OMCs (Oil Marketing Companies), and power generation and refinery companies. Heavyweight stocks such as ARL (Attock Refinery Limited), HUBCO (the Hub Power Company Limited), MARI, OGDC (Oil & Gas Development Company Limited), PPL (Pakistan Petroleum Limited), POL (Pakistan Oilfields Limited), HBL (Habib Bank Limited), MEBL (Meezan Bank Limited), and MCB were all trading in positive territory.
According to Arif Habib Limited’s report, “Pakistan Investment Strategy 2026: The Equity Edge Continues,” the PSX is expected to remain the top-performing asset class in 2026, underpinned by improving macroeconomic conditions, easing inflation, and steady domestic liquidity.
According to Khurram Schehzad, advisor to the Finance Minister, the Pakistani equity market has produced almost 50% gains in US dollars since January 2025, placing it among the best performers in Asia.
“Since January 2025, the PSX has delivered 50%+ returns in US dollar terms, making it one of the best markets in Asia, with 2025 being another year of strong gains for investors,” said Advisor to Finance Minister, Khurram Schehzad. “Investor participation is rising fast – the equity investor base has crossed 450,000, up 120,000+ investors (+37%) in 18 months.
“These record levels reflect growing investor confidence, supported by continued macro stability, key reforms, and improving prospects for more sustainable, higher future growth,” he added.
Last week, the KSE-100 Index concluded at a record 172,400.73 points, marking a 0.6% weekly increase and extending its year-end rally to all-time highs.
Globally, Asian markets opened at six-week highs, while the US dollar hovered near three-month lows amid expectations that the Federal Reserve could cut interest rates next year, fueling gains in precious metals.
Geopolitical developments also influenced sentiment. On Sunday, US President Donald Trump indicated that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer” to reaching a potential agreement to end the Ukraine war.
MSCI’s (Morgan Stanley Capital International) broad Asia-Pacific index climbed 0.27%, reaching its highest level since October 3, as the region kicked off the final week of the year on a strong note. The index has surged more than 25% this year, driven largely by technology stocks amid ongoing AI enthusiasm.
South Korea’s Kospi jumped 1.5% to near a two-month high, bringing its annual gains to an impressive 74%, on track for its strongest yearly performance since 1999.
Meanwhile, Japan’s Nikkei fell 0.4%, while Taiwan stocks inched up 0.3% to set a new record high.