KARACHI: The Pakistan Stock Exchange (PSX) surged to a historic milestone on Monday, with the benchmark KSE-100 Index crossing the 190,000 level for the first time, driven by strong investor optimism ahead of the State Bank of Pakistan’s (SBP) monetary policy decision and expectations of an interest rate cut.
During intraday trading, the KSE-100 Index touched a record high of 191,032.73 points, gaining 1,865.91 points or 0.99 per cent. The index traded within a range of 189,788.67 to 191,032.73 points, compared with the previous close of 189,166.82.
Market participants attributed the rally to easing global geopolitical concerns, particularly signs of stabilisation on the US-Iran front, alongside growing expectations that the SBP’s Monetary Policy Committee may announce a 50-basis-point rate cut.
“The market opened on a higher note amid improving global sentiment,” said Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited. “Investor focus has now shifted to the MPC decision, where consensus expects a 50bps cut. Any dovish surprise could further boost equities.”
Analysts believe the near-term outlook for equities remains positive, supported by expectations of continued monetary easing, reform momentum, and improving macroeconomic indicators. However, they caution that profit-taking near record levels could introduce short-term volatility.
Some brokerage houses project the KSE-100 Index to reach as high as 263,800 points by December 2026, underpinned by anticipated foreign portfolio and direct investment inflows, as well as strengthening relations with key global partners.
Recent economic data has added to investor confidence. In December 2025, the current account recorded a deficit of $244 million, while foreign direct investment posted a net outflow of $135 million.
Power generation increased by 8.8 per cent year-on-year, IT exports reached a record $437 million, up 26 per cent, and SBP foreign exchange reserves rose to $16.1 billion. The rupee also appreciated marginally to 279.86 against the US dollar.
Over the previous week, the KSE-100 Index gained 4,068 points, or 2.2 per cent, reflecting sustained bullish momentum at the bourse.
