By Ali Imran
ISLAMABAD: The equity market rose on Monday, extending the New Year rally as investors leaned into asset-allocation flows and easing macro signals, with the benchmark adding 8,353.92 points (4.80%) across the first three sessions of 2026.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 182,408.23 points, up 3,373.3 points, or 1.88%, from 179,034.93. The session witnessed a low of 179,535.46, up 500.53 points, or 0.28%.
During the session, the index touched a new all-time intraday high of 183,964.37, gaining 4,929.44 points, or 2.75%, from the previous close of 179,034.93. The session witnessed a low of 179,535.46, up 500.53 points, or 0.28%. The session witnessed a low of 179,535.46, up 500.53 points, or 0.28%. The day’s peak marked a fresh all-time intraday high.
“Overall positive start of the year is witnessed as investors pour in massive liquidity to target year asset allocation,” said AAH Soomro, an independent investment and economic analyst. “Going too fast too soon,” he added.
Research houses flagged a constructive near-term setup. AKD Research said sentiment should strengthen on prospects of foreign portfolio and direct investment inflows.
They added that the KSE-100 Index could extend its uptrend towards 263,800 by December 2026, sup-ported by easing monetary conditions, improving external accounts and steady reform momentum.
The index advanced 6,634 points (3.8% WoW) last week to a record 179,035, aided by a softer-than-expected December 2025 Consumer Price Index (CPI) at 5.6%, reinforcing expectations of further monetary easing.
On Friday, the benchmark jumped 2,679.44 points (1.52%) to 179,034.93, trading between 179,467.84 and 176,709.52.
Over the past week Pakistan’s trade deficit widened 24% year-on-year to $3.7 billion in December 2025, while GDP growth printed 3.7% YoY in 1QFY26.
State Bank of Pakistan (SBP) foreign-exchange reserves rose $13 million week-on-week to $15.9 billion as of December 26, and the rupee appreciated 0.02% to 280.11 per US dollar.
The central bank purchased $6.9 billion from the currency market over the past 12 months, according to official updates. Separately, the Federal Board of Revenue (FBR) collected Rs6.2 trillion in 1HFY26, missing the target by Rs338 billion.
Authorities also explored a $1 billion liability settlement via UAE investment in Fauji Group, the United States signalled renewed interest in partnerships spanning locomotive sales and mineral exploration, and officials outlined plans to launch Pakistan’s first Panda bond in China.
Weekly inflation, measured by the Sensitive Price Indicator (SPI), fell 0.67% in the week ended January 1, 2026, to 333.96 from 336.22; on a year-on-year basis, SPI rose 2.41%, the Pakistan Bureau of Statistics (PBS) said.
By consumption group, the SPI declined 0.62% for the lowest band (up to Rs17,732) and 0.61%–0.73% across higher brackets.
