Institutional support takes PSX to peak

KSE-100 index rises 1,457 points as 2026 rally continues in full swing

KARACHI:

The Pakistan Stock Exchange (PSX) maintained its bullish streak on Wednesday as the benchmark KSE-100 index touched a new record, supported by continued buying from institutional investors.

The market commenced trading with a spike but it soon plunged to the intra-day low of 184,897 in the very first hour. Afterwards, investor sentiment improved and buying interest emerged, taking the market to the intra-day high of 187,015 well after midday. At close, the KSE-100 settled at 186,518.72, up 1,456.61 points, or 0.79%. Market watchers attributed the strong close to sustained institutional flows, which helped the index overcome early pressure.

Topline Securities, in its report, observed that the local bourse remained firmly up and extended its stellar momentum to notch an all-time high close at 186,519. The benchmark index experienced a highly buoyant session, surging to the intra-day high of 1,953 points, while profit-taking remained modest, with the intra-day low capped at 165 points, underscoring the market's underlying strength.

Optimism has been carried over decisively into 2026, where the PSX gained a robust 12,464 points (+7.2%) in the first five trading sessions. The powerful start to the new year reflects sustained investor confidence, driven largely by aggressive buying from local funds. Shifting asset allocation from fixed-income instruments to equities amid declining returns on traditional avenues has continued to fuel liquidity and support elevated valuations, it said.

Heavyweight stocks once again led the advance with Hub Power, Pakistan Petroleum, Engro Holdings, MCB Bank and Meezan Bank emerging as key drivers. They contributed around 766 points to the index, Topline added. Ismail Iqbal Securities stated that the benchmark index closed on a positive note as it hit fresh all-time highs both intra-day and at close for the fifth consecutive session.

The 2026 rally continued in full swing, driven by strong liquidity inflows and ongoing asset class conversion, keeping investor optimism firmly intact. Power generation & distribution, oil & gas exploration and cement sectors were the major contributors, adding 689 points to the index, the research house said. KTrade Securities noted that the PSX closed another session on a strong note, pushing the benchmark KSE-100 index up by 1,457 points (+0.79%) to 186,519. The market maintained its upward bias, which reflected steady investor participation and continued confidence in the broader trend.

The rally was primarily driven by heavyweight stocks, where Hub Power made a major contribution, followed by Pakistan Petroleum, Engro Holdings, MCB Bank and Meezan Bank. The strength in those names helped absorb intermittent profit-taking and kept the index firmly positive at close, KTrade said.

"Bulls extended the rally at the PSX for the third consecutive session, with the index closing at a fresh all-time high of 186,519, gaining 1,457 points," JS Global analyst Nawaz Ali commented. He attributed the surge to continued interest from institutional investors and local funds amid a shift in allocations from fixed-income instruments to equities.

Overall trading volumes increased to 1.33 billion shares compared with Tuesday's tally of 1.31 billion. The value of traded shares stood at Rs86.6 billion. Shares of 486 companies were traded. Of these, 299 rose, 161 fell and 26 remained unchanged.

K-Electric continued to lead the volumes chart with trading in 77.9 million shares, edging down Rs0.01 to close at Rs6.55. It was followed by Hascol Petroleum with 58.6 million shares, gaining Rs1.22 to close at Rs18.32 and The Bank of Punjab with 54.5 million shares, gaining Rs0.72 to close at Rs42.95.