PSX opens 2026 higher as KSE-100 breaks 176,000 mark for first time

The equity market rose on Thursday, opening 2026 on a firm footing and crossing the 176,000 mark for the first time ever, after an upbeat Ministry of Finance (MoF) monthly outlook, fresh new-year fund allocations, and ongoing privatisation momentum improved risk appetite.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 176,132.52, a new all-time intraday peak, gaining 2,078.2 points, or 1.19%, from the previous close of 174,054.32. It witnessed a low of 174,437.70, still up 383.38 points, or 0.22%.

“Yesterday, the Ministry of Finance presented a monthly economic outlook, which was optimistic towards the LSM [large-scale manufacturing] and inflation numbers," said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.

"Also, fresh fund allocations by institutions for the new year have also resulted in a positive trend at the PSX," he added.

Prime Minister Shehbaz Sharif on Wednesday touted progress on taxes, inflation and external buffers. 

He said revenues rose 26% in 2025, more than one million new taxpayers were added, the tax-to-GDP ratio moved from “around 8% to over 10%,” and the current account swung to a $1.9 billion surplus from a $3.3 billion deficit. 

He added that the foreign-exchange reserves climbed from $9.2 billion to $21.2 billion over two years. 

He also cited the completion of the long-delayed privatisation of Pakistan International Airlines (PIA) and First Women Bank. 

Finance Minister Muhammad Aurangzeb said reforms had lowered inflation and improved investment prospects, adding that 16 initial public offerings (IPOs) are expected in the coming year.

Separately, the Cabinet Committee on Privatisation (CCoP) approved a Rs135 billion bid from an Arif Habib Corporation (AHC)-led consortium for a 75% stake in Pakistan International Airlines Corporation Limited (PIACL), recommending federal-cabinet approval as the process advances, according to The News. 

Deputy Prime Minister Ishaq Dar urged swift execution, saying privatisation could help PIA recover its “glory days.”

On Wednesday (final trading day of 2025), selling pressure clipped early gains and the KSE-100 closed at 174,054.32, down 418.47 points, or 0.24%, after swinging between 175,232.90, up 760.11, and 173,564.33, down 908.46. 

Year-on-year, the benchmark rallied roughly 59,000 points from 115,126.90 on December 31, 2024, amid macro stabilisation, easing inflation and stronger investor confidence.