Buying momentum continued at the Pakistan Stock Exchange on Monday, with the benchmark KSE-100 Index closing at a new all-time high amid strong investor sentiment.
The index opened sharply higher and climbed rapidly during early trade, reaching an intra-day high of 174,411.72 points on aggressive buying.
At close, the KSE-100 settled at 173,896.34 points, up 1,495.61 points, or 0.87%, from the previous session.
Market participants linked the bullish tone to expectations of fresh investment inflows from the United Arab Emirates. Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar said on Saturday that the UAE would acquire shares in Fauji Foundation companies as part of ongoing economic cooperation between the two countries.
Analysts said the development helped reinforce confidence, particularly after the market ended the previous week at record levels.
Meanwhile, equities are expected to remain the best-performing asset class in 2026, supported by improving macroeconomic conditions, easing inflation and sustained domestic liquidity, according to a report by Arif Habib Limited.
Advisor to the finance minister Khurram Schehzad said on Monday that the PSX delivered returns of more than 50% in US dollar terms during the outgoing year, placing it among the top-performing markets in Asia.
He said the equity investor base has crossed 450,000, reflecting an increase of over 120,000 investors, or 37%, over the past 18 months. He added that record market levels reflect rising investor confidence supported by macroeconomic stability, reforms and improved growth prospects.
During the previous week, the KSE-100 had closed at 172,400.73 points, posting a week-on-week gain of 0.6% and extending its record-breaking rally as the market wrapped up the year-end phase at an all-time high.
In the currency market, the Pakistani rupee recorded a marginal gain against the US dollar in the interbank market, closing at 280.16, up Re0.01.
Trading activity remained strong, with all-share index volume rising to 858.05 million shares from 797.99 million in the previous session. Traded value increased to Rs42.87 billion from Rs38.06 billion.
WorldCall Telecom led volumes with 52.85 million shares, followed by Dost Steels Ltd with 51.36 million shares and Pakistan Telecommunication Company Limited with 42.55 million shares.
A total of 485 companies were traded during the session, with 177 stocks closing higher, 272 declining and 36 ending unchanged.
