PSX hits record high on UAE investment optimism
KSE-100 Index climbs to intraday high of 174,411.72, gaining 2,010.99 points, or 1.17%
December 29, 2025
The equity market rose on Monday as optimism over a prospective United Arab Emirates (UAE) investment in Fauji Foundation, with a $1 billion rollover liability settlement, buoyed risk appetite and drove the bourse to a new all-time intraday high.
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index climbed to an intraday high of 174,411.72, gaining 2,010.99 points, or 1.17%, and recorded a low of 173,200.41, reflecting a gain of 799.68 points, or 0.46%.
"Bullish activity witnessed as investors eye UAE $1 billion rollover liability set to end, acquiring shareholding in Fauji Foundation," said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
"Government deliberation on privatisation of ailing SOEs [state-owned enterprises], rupee stability and surging global crude oil prices played a catalyst role in bullish activity at PSX,” he added.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE is set to acquire shares in the Fauji Foundation as part of ongoing economic cooperation, adding that the transaction is expected to help settle a $1 billion liability while a further $2 billion loan could be rolled over.
He said the understanding followed the UAE president’s visit and expressed hope the share acquisition would be completed by March 31, 2026; Islamabad is also seeking to persuade the UAE to reinvest $2 billion due in January.
“The recent comment by Ishaq Dar on the potential acquisition of Fauji Group shares by the UAE has sparked a rally in Fauji Group companies, driving the market upwards predominantly today," said independent investment and economic analyst AAH Soomro. He further added: "Overall bullishness continues.”
Commenting on the record high, Advisor to the Finance Minister Khurram Schehzad said in a post on X that the KSE-100 Index crossing 174,400 points marked “yet another record high.”
He noted that since January 2025, the PSX has delivered over 50% returns in US-dollar terms, and that the equity investor base has topped 450,000, up more than 120,000 investors (+37%) in 18 months.
On Friday, the benchmark KSE-100 Index closed higher by 1,570.51 points, or 0.92%, to 172,400.73 from 170,830.22, after trading between a high of 172,582.96 and a low of 171,146.14.
