The index closed Thursday’s session above 176,350, marking a robust gain of slightly over 2,300 points, as investor sentiment was buoyed by easing inflation, expectations of accommodative monetary policy, and aggressive participation by local institutions at the start of the new calendar year. Banking heavyweights, energy stocks, and select index leaders drove the rally, underscoring sustained confidence in Pakistan’s equity outlook despite mixed global cues.
At the close of trading, the benchmark KSE-100 index posted a strong gain of 2,301.17 points, or 1.32%, and settled at 176,355.49.
“The new year began on a strong footing as the KSE-100 index advanced by 1.32% on a day-on-day basis,” noted Arif Habib Limited (AHL). Market breadth remained firmly positive, with 77 shares closing higher against 23 decliners.
UBL, Oil & Gas Development Company (OGDC), and Engro Holdings were the top contributors to index gains, rising by 4.36%, 2.39%, and 1.88%, respectively. On the downside, Systems Limited, DG Khan Cement, and Service Industries acted as the biggest drags on the index, declining by 0.49%, 1.34%, and 1.75%, respectively, it said.
From a macro perspective, the December CPI inflation clocked in at 5.6% year-on-year, coming in below market expectations and lending support to the State Bank’s recent policy rate cut. On the corporate front, OGDC announced a hydrocarbon discovery at Baragzai X-10 in Khyber-Pakhtunkhwa, with expected production of 4,100 barrels of oil per day and 10.5 mmcfd of gas.
The joint venture includes Pakistan Petroleum with a 30% stake and Government Holdings (Private) Limited with a 5% interest. Technically, the market support has now risen to 175,000, above which higher index levels are likely to remain in play, added AHL.
“Pakistan Stock Exchange kicked off 2026 on a powerful note, extending the strong momentum carried over from 2025,” mentioned K-Trade Securities. The KSE-100 index surged 2,301 points to close at a new all-time high of 176,355. The rally was broad-based, led by banks, energy firms, pharmaceuticals, and investment banks, reflecting strong institutional participation. Banking heavyweights including UBL, HBL, Meezan Bank, Bank AL Habib, MCB Bank and The Bank of Punjab anchored the advance, while OGDC, Engro Holdings, and Lucky Cement added further upside support, underscoring confidence across both cyclical and defensive plays, it said.
Topline’s market review said the trading session was robust on the first day of the year, as the KSE-100 rallied to close at 176,355 (up by 1.32%). This positivity can be attributed to buying by local institutions at the start of the year. Top positive contribution to the index came from UBL, OGDC, Engro Holdings, HBL, Lucky Cement and Bank AL Habib, as they cumulatively contributed 1,207 points, it said.