PSX maintains record-setting rally

KSE-100 index closes at 174,473, led by gains in energy and banking stocks

KARACHI:

The Pakistan Stock Exchange (PSX) rallied to another record high on Tuesday and appeared well-positioned for a vibrant performance in 2026, underpinned by improving investor sentiment and ample liquidity.

The market began the day's proceedings on a strong footing, swiftly scaling to the intra-day peak of 174,805 in early trading. However, profit-taking triggered a mid-morning correction, which pulled the index down to the intra-day low of 174,121.

Subsequently, investor confidence strengthened with the market moving in a narrow band and making a gradual recovery through the afternoon. The rally was primarily supported by stocks of energy and banking sectors, with impressive contribution, while fertiliser and cement shares faced a mild pressure amid profit-taking.

The benchmark KSE-100 index closed at a fresh all-time high of 174,472.80, up 576.45 points, or 0.33%.

In its market wrap, KTrade Securities wrote that the PSX extended its record-setting momentum, with the KSE-100 closing at a fresh all-time high of 174,473, gaining 576 points. The broader trend remained positive, supported by sector rotation and selective profit-taking rather than broad-based selling.

Gains were led by energy, banking and power stocks, which provided the backbone for the market's advance, while fertiliser and cement sectors faced mild pressure. Strong buying interest was observed in Oil and Gas Development Company, UBL, Pakistan Petroleum, PSO, Hub Power, Meezan Bank and Attock Refinery, whereas Fauji Fertiliser, Engro Fertilisers, DG Khan Cement, Fauji Cement and Maple Leaf Cement pulled the index down, it said.

Market participation stayed healthy despite minor intra-day volatility, with volumes reaching 851 million shares, reflecting sustained liquidity and investor confidence, KTrade added.

Topline Securities analyst Asad Ali commented that the benchmark KSE-100 index jumped 52% in rupee value (51% in US dollar) in 2025 as only one trading session was left. Market capitalisation of listed companies increased 39% to reach Rs19.7 trillion or $70 billion, he said.

Arif Habib Limited (AHL) observed that intra-day highs were just short of the 175k level as the market's advance continued. Some 65 shares rose while 36 fell with OGDC (+2.61%), UBL (+1.14%) and Pakistan Petroleum (+2.19%) contributing the most to the index gains. In contrast, Fauji Fertiliser (-0.84%), Engro Fertilisers (-1.34%) and DG Khan Cement (-2.87%) were the biggest index drags.

AHL highlighted that headline inflation in December 2025 was expected to ease to 5.8% as compared to 6.2% in November; though it "remains elevated compared to 4.1% in November 2024".

Additionally, the State Bank of Pakistan's data on interventions in the forex market showed that it bought a net $6.9 billion in 12 months till September 2025. According to the SBP, Pakistan's GDP grew 3.71% in the first quarter of 2025-26. AHL believes that the near-term target of 175k is now in sight and should be hit in Wednesday's session.

Overall trading volumes decreased to 851 million shares against Monday's tally of 858 million. The value of traded shares stood at Rs44.9 billion.

Shares of 479 companies were traded. Of these, 282 closed higher, 158 fell and 39 remained unchanged.

Trust Brokerage was the volume leader with trading in 57.5 million shares, rising Rs0.63 to close at Rs3.99. It was followed by Fauji Foods with 54.4 million shares, falling Rs0.07 to close at Rs20.90 and Unity Foods with 49.2 million shares, gaining Rs1.46 to close at Rs21.61.

Foreign investors sold shares worth a net Rs594.7 million, the National Clearing Company reported.