Bullish momentum prevailed throughout the trading session, pushing the KSE-100 Index to an intra-day high of 179,467.83.

At close, the benchmark index settles at 179,034.93, an increase of 2,679.44 points or 1.52%.

 “The record rally at PSX is largely driven by new-year positioning, strong liquidity, and expectations of further monetary easing,” Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder.

The analyst noted that with inflation easing and real rates peaking, the market is pricing in a 50bps [basis points] policy rate cut in the upcoming Monetary Policy Committee (MPC) meeting.

 “This is improving equity appeal against fixed income,” he said.

 “Moreover, improving macroeconomic stability, a stable PKR, and better earnings visibility, especially in banks and cyclical sectors, have supported a forward-looking re-rating of equities.”

Pakistan’s headline inflation clocked in at 5.6% on a year-on-year (YoY) basis in December 2025, showed Pakistan Bureau of Statistics (PBS) data, a reading in line with the Ministry of Finance estimate of 5.5-6.5%.

Meanwhile, Pakistan’s total liquid foreign exchange reserves stood at $21.012 billion as of December 26, 2025, showing a marginal decline from $21.023 billion recorded a week earlier on December 19, according to statistics released by the State Bank of Pakistan (SBP).

On Thursday, PSX kicked off 2026 with a resounding surge, as broad-based buying drove all major indices higher, marking a confident and bullish start to the New Year. The benchmark KSE-100 Index registered a sharp gain of 2,301.17 points, or 1.32%, to close at 176,355.49 points.