Pakistan’s stock market began the final week of the year with strong gains on Monday, as the benchmark KSE-100 Index climbed above the 174,000 mark in early trading.

In the opening minutes of the session, the index surged past 174,000. By 9.35am, the KSE-100 stood at 173,808.99 points, up 1,408.26 points, or 0.82 per cent, from the previous close.

Shortly afterwards, gains exceeded 1,900 points, allowing the benchmark index to breach the 174,000 milestone.

Market analysts said the rally was driven by broad-based buying across key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms and refineries.

According to Arif Habib Limited’s report, “Pakistan Investment Strategy 2026: The Equity Edge Continues,” Pakistan’s stock market could emerge as the best-performing asset class in 2026.

The report cited improving economic stability, easing inflation and sustained domestic liquidity as key factors expected to support the market.

The stock market had also posted historic gains last week, with the KSE-100 closing at a record 172,400.73 points after a strong rally, reflecting a weekly increase of 0.6 per cent.