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

The stock market rallied on Thursday, opening 2026 on a firmer footing and breaching the 176,000 mark for the first time, after an upbeat monthly outlook by the Ministry of Finance (MoF), new capital allocations for the new year and continued privatization momentum improved risk appetite.

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

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

“Also, new fund allocations from institutions for the new year also led to a positive trend in the PSX,” he added.

Prime Minister Shehbaz Sharif on Wednesday reported progress on taxes, inflation and external security reserves.

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

He added that foreign exchange reserves increased from $9.2 billion to $21.2 billion in two years.

He also mentioned the completion of the delayed privatization of Pakistan International Airlines (PIA) and First Women Bank.

Finance Minister Muhammad Aurangzeb said the reforms have reduced inflation and improved investment prospects, adding that 16 initial public offerings (IPOs) are expected next year.

Separately, the Cabinet Committee on Privatization (CCoP) has approved a Rs135 billion bid by a consortium led by Arif Habib Corporation (AHC) for a 75% stake in Pakistan International Airlines Corporation Limited (PIACL), recommending federal cabinet approval as the process moves forward, according to The Newsmall.

Deputy Prime Minister Ishaq Dar urged speedy execution, saying privatization could help PIA regain its “glory days”.

On Wednesday (final trading day of 2025), selling pressure pared 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 points and down 173.46.5 points.

Year-to-date, the benchmark rose roughly 59,000 points from 115,126.90 on Dec. 31, 2024, amid macroeconomic stabilization, easing inflation and stronger investor confidence.