PSX roars into 2026 with record 6-day gain

January 07, 2026 (MLN): Pakistan’s equity market has staged an exceptional rally, with the benchmark KSE-100 Index recording a historic 6-day calendar year (CY) gain of around 11,000 points in 2026.

This surge marked one of the strongest short-term performances in the history of the Pakistan Stock Exchange (PSX).

Investor sentiment remains upbeat on expectations of further monetary easing, backed by an improving external account, ongoing reform momentum, and political stability.

The rally far exceeds gains recorded in prior years, emphasized a sharp shift in market confidence and strong buying interest across key sectors.

A comparison with past years shows that the index added 561.15 points in 2020, followed by a stronger rise of 1,398.04 points in 2021, before retreating to gains of 486.23 points in 2022 and 587.07 points in 2023 amid heightened macroeconomic uncertainty.

Momentum improved notably in 2024, when the KSE-100 Index advanced by 2,063.86 points over a 6-day CY period, while 2025 saw a still-respectable increase of 1,128.22 points, setting the stage for the unprecedented rally witnessed in 2026.

Market participants attribute the sharp upswing in 2026 to improving macroeconomic indicators, easing inflation expectations, growing optimism over potential monetary easing, and sustained participation from both local and foreign institutional investors.

Attractive equity valuations and renewed confidence in economic reforms have further supported the bullish trend as continued growth across key sectors and a 6% increase in OMC sales for December has surged the market momentum.

Historically, the Pakistan Stock Exchange has tended to slow in the second half of the fiscal year, with several years showing weaker or negative 2HY performance after a stronger first half.

This pattern was evident across much of FY13–FY23, showing recurring macroeconomic and political challenges that dampened momentum later in the year.

In contrast, recent years suggest a clear shift. FY24 and FY25 both delivered strong first-half gains and remained positive in the second half, while FY26 has already posted a solid 38.55% return in 1HY.

If recent trends persist, the second half of FY26 may also remain positive.

In the ongoing trading session, the benchmark KSE-100 Index was trading at 185,956.24, up by 894.14 points or 0.48%.

A wide intraday range of 1,871.36 points, touching a high of 186,768.06, up 1,705.96 points.

While the day’s low was recorded at 184,896.70, down 165.40 points.

Total volumes on the KSE-100 Index stands at 216.71 million shares.

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