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.

After the early spike, profit-taking set in, dragging the index to an intra-day low of 173,200. However, the decline was short-lived, as renewed buying interest helped the market recover losses and trade within a narrow range for the remainder of the session.

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 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, as projected by 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.