The Pakistan Stock Exchange extended its powerful New Year rally on Monday as the benchmark index surged past another historic milestone.The KSE-100 Index crossed the 183,000 level during intraday trade, reflecting strong asset-allocation flows and improving macroeconomic signals.
The index closed at 182,408.23 points, gaining 3,373.3 points or 1.88 percent compared to the previous session.Meanwhile, intraday trading saw the benchmark touch a record high of 183,964.37 points, marking a gain of 2.75 percent.
Despite brief volatility, market momentum remained firmly positive.The day’s low stood at 179,535.46 points, which still reflected a net gain from the prior close.This performance extended the rally seen since the start of 2026.
Over the first three trading sessions of the year, the KSE-100 has added 8,353.92 points, translating into a cumulative rise of 4.80 percent.This sharp advance highlights renewed investor confidence across equities.
Market participants attributed the rally to aggressive liquidity inflows and portfolio rebalancing at the start of the year.An independent investment analyst noted that investors were actively reallocating capital, targeting higher equity exposure amid favorable conditions.However, he cautioned that the pace of gains appeared rapid and required careful monitoring.
Research firms also maintained a constructive outlook for the near term.They highlighted expectations of foreign portfolio inflows and steady foreign direct investment as key support factors.Additionally, easing monetary conditions and stabilizing external accounts continue to underpin sentiment.
According to research projections, the KSE-100 Index could extend its upward trajectory through 2026, supported by reforms and macroeconomic stability.These expectations have encouraged both institutional and retail participation.
Last week, the benchmark index gained 6,634 points, or 3.8 percent, closing at a record level.This advance followed softer-than-expected inflation data for December 2025, which reinforced expectations of further monetary easing.
Macroeconomic indicators have provided mixed but manageable signals.Pakistan’s trade deficit widened year-on-year in December, while GDP growth reached 3.7 percent during the first quarter of fiscal year 2026.At the same time, foreign exchange reserves posted a modest weekly increase, and the rupee recorded marginal appreciation against the US dollar.
Inflation trends also offered relief.Weekly inflation declined during the final week of December, easing pressure across all consumption brackets.This decline supported expectations of policy continuity and improved purchasing power.
Looking ahead, investors remain focused on liquidity trends, inflation data, and policy signals.If current momentum persists, market participants expect continued volatility alongside opportunities, as the PSX navigates uncharted territory at historic highs.
