KSE-100 hits new all-time high on nearly 1,500-point rally

Buying spree continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index closing at a new all-time high amid a gain of nearly 1,500 points on Monday.

The benchmark index opened sharply higher and quickly surged to an intra-day high of 174,411.72, amid aggressive early buying and positive sentiment.

At close, the benchmark index settled at 173,896.34, an increase of 1,495.61 points or 0.87%.

Market analysts attributed the bullish sentiment to expectations of investment from the United Arab Emirates (UAE).

Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar on Saturday said the UAE would acquire shares in the Fauji Foundation as part of ongoing economic cooperation between the two countries.

Meanwhile, PSX is expected to remain the best-performing asset class in 2026, supported by improving macroeconomic stability, easing inflationary pressures, and sustained domestic liquidity, projected Arif Habib Limited’s report titled “Pakistan Investment Strategy 2026: The Equity Edge Continues.”

Advisor to Finance Minister, Khurram Schehzad, said on Monday that the PSX has delivered a 50%+ return in US dollar terms during the outgoing year, making it one of the best-performing markets in Asia.

“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 said.

During the previous week, Pakistan’s equity market closed on a historic note, with the benchmark KSE-100 Index extending its record-breaking rally to settle at 172,400.73 points, marking a week-on-week increase of 0.6%, underscoring sustained upward momentum as the market wrapped up the year-end phase at an all-time high.

Internationally, Asian stocks were at six-week highs on Monday, while the dollar hovered near its lowest in almost three months on expectations of the Federal Reserve cutting interest rates next year, which has also sparked a fierce rally in precious metals.

Geopolitics was back on investors’ minds after U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to an agreement to end the war in Ukraine.

In stocks, MSCI’s broadest index of Asia-Pacific shares was 0.27% higher, hitting its highest since October 3 in a strong start to the last week of the year. The index has risen over 25% this year, boosted by technology stocks as AI mania firmly took hold of investors.

South Korea’s Kospi rose 1.5% to a near two-month peak, taking its yearly gains to an eye-popping 74%, on pace for its strongest annual gain since 1999.

Japan’s Nikkei slipped 0.4%, while Taiwan stocks rose 0.3% to a record high.

Meanwhile, the Pakistani rupee recorded marginal improvement against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 280.16, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 858.05 million from 797.99 million recorded in the previous close. The value of shares rose to Rs42.87 billion from Rs38.06 billion in the previous session.

WorldCall Telecom was the volume leader with 52.85 million shares, followed by Dost Steels Ltd with 51.36 million shares, and P.T.C.L with 42.55 million shares.

Shares of 485 companies were traded on Monday, of which 177 registered an increase, 272 recorded a fall, and 36 remained unchanged.