PSX surges past 191,000 for first time ahead of SBP's MPC meeting

• KSE-100 Index closed at 188,587.66, down 579.16 points, or -0.31%.
• Index hit intraday high of 1191,032.73, up 1,865.91 points, or 0.99%.
• Session low recorded at 188,268.38, down 898.44 points, or -0.47%.

Stocks at the bourse were mixed on Monday, marking an all-time intraday high above 191,000 even as the benchmark closed slightly lower, while traders eyed the State Bank’s (SB) Monetary Policy Committee (MPC) decision amid US-Iran headlines.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 188,587.66 points, down 579.16 points, or -0.31%, from 189,166.82. The index traded between a high of 191,032.73, up 1,865.91 points, or 0.99%, and a low of 188,268.38, down 898.44 points, or -0.47%.

"The market opened on a higher note amid signs of stabilisation on the US-Iran front, as investors stayed cautious heading into the weekend after media reports of US assets moving towards the Middle East," said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.

"Focus now shifts to today’s Monetary Policy Committee decision, where consensus expects a 50bps rate cut — any dovish surprise could unleash fresh optimism towards equities," he added.

Analysts see a positive near-term tone as investors position for additional monetary easing and reform momentum. Lower yields, improving external indicators and steady political conditions are keeping risk appetite supported. 

Confirmation of rate cuts could extend the rally, though profit-taking near record levels remains a risk. 

Some brokerage houses forecast the index to reach 263,800 by December 2026, with sentiment underpinned by the prospect of foreign portfolio and direct investment inflows alongside improving ties with key partners.

Adding to the optimism, in December 2025, the current account posted a $244 million deficit and foreign direct investment saw a net $135 million outflow. 

Power generation rose 8.8% year-on-year, while information-technology exports hit a record $437 million (up 26%). State Bank of Pakistan (SBP) foreign-exchange reserves increased from $16 million to $16.1 billion, and the rupee appreciated 0.03% to 279.86 per US dollar.

Over the prior week, the KSE-100 gained 4,068 points (2.2% WoW) to close at 189,167, with average daily volumes up 8.7% to 1.3 billion shares. On Friday, the benchmark rose 1,478.66 points (0.79%) to 189,166.83 after moving between 189,566.64 and 186,637.57.