PSX rises higher as investors weigh SBP outlook, reserve uptick
KSE-100 Index touches intraday high of 187,491.69, up by 2,392.86 points, or 1.29%
January 19, 2026
The stock market gained on Monday as mid-caps outperformed on expectations of interest-rate cuts, a moderate current-account deficit, debt-restructuring bets and optimism around cheaper funding via a prospective panda bond launch.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index traded between a high of 187,491.69 (up 2,392.86 points, or 1.29%) and a low of 186,127.35 (up 1,028.52 points, or 0.56%) versus the previous close of 185,098.83.
“Today we are seeing positivity in mid-caps due to expectations of interest rate cuts, moderate Current Account Deficit, debt restructuring bets and expected cheaper rate on panda bond launch,” said AAH Soomro, an independent investment and economic analyst. "Expect this to continue."
A Topline Research survey ahead of the State Bank of Pakistan (SBP) Monetary Policy Committee meeting on January 26 shows 80% of participants expect a cut; of these, 56.4% see 50 bps, 15.4% expect 100 bps, 5% look for 25 bps and 3% foresee 75 bps, while 20% expect no change. The SBP cut 50 bps at its December 15, 2025 meeting.
SBP reserves rose $16 million to $16.072 billion in the week ended January 9, lifting total liquid reserves to $21.248 billion (commercial banks $5.177 billion, up $40 million). The SBP noted continued foreign-exchange purchases amid a steadier current account supported by remittances; from June 2024 to September 2025, net market purchases totalled $9.7 billion.
The central bank projects the FY26 current-account deficit at 0–1% of GDP and sees reserves at $17.8 billion by June 2026 with planned official inflows. Separately, the Ministry of Finance said it plans to tokenise up to $2 billion of domestic government debt in an initial phase to broaden access and modernise public-debt markets.
The KSE-100 ended last week at 185,099, up 689 points week-on-week as late buying offset midweek pressure. Volatility remained elevated, but sentiment improved on easing regional tensions, falling Pakistan Investment Bond (PIB) yields (down 59–70 bps across two, three, five and 10-year tenors), and reform-related news. Average daily traded volume fell 24.5% week-on-week to 1.2 billion shares.
