ISLAMABAD: Pakistani stocks hit a new record high on Wednesday, with the benchmark KSE-100 index breaching the 186,000-point mark for the first time as strong institutional buying and optimism over profits and potential foreign inflows lifted market sentiment.
The index closed at 186,518.71, up 1,456.61 points (0.79%) from 185,062.10 the previous day. In intraday trading, the stock rose by more than 187,000 points at one point, but fell slightly by the close.
Analysts said the gains reflected growing confidence among domestic and global investors, supported by expectations for corporate earnings and signs of progress in Pakistan's fiscal and energy sector challenges.
Pakistan's stock market gained momentum in early 2026 as widespread institutional buying across key sectors boosted investor confidence even as the country continued to advance economic reforms under an international lending program.
“The strength in global equities and government deliberations towards resolving circular debt and managing fiscal deficits played a catalytic role in nearing a record on the PSX,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.
This strong momentum is sure to carry over into the new year. Stocks rose more than 12,000 points in the first five trading sessions of 2026, marking one of the market's strongest starts to the calendar year, according to Pakistani brokerage Topline Securities.
“The optimism carries over decisively into 2026, with the PSX posting a strong gain of 12,464 points (+7.2%) in the first five trading sessions of the year,” Topline Securities said in a daily market review published in X.
“This strong start reflects sustained investor confidence, primarily supported by aggressive buying from local funds.”
Topline added that lower fixed income returns are driving asset allocations toward equities, a trend that is expected to continue to support rising liquidity and equity valuations.
Large caps such as Hub Power Company Limited (HUBC), Pakistan Petroleum Limited (PPL), Engro Corporation Limited (ENGROH), Muslim Commercial Bank Limited (MCB) and Meezan Bank Limited (MEBL) were the major contributors, together adding 766 points to the index.
Market activity remained strong, with total trading volume reaching 1.3 billion shares and sales reaching 86.1 billion rupees ($309 million). K-Electric (KEL) led the trading volume with 77.8 million shares traded during the session.
