The stock market rose on Monday as optimism over a future United Arab Emirates (UAE) investment in the Fauji Foundation, with a $1 billion debt settlement, boosted risk appetite and sent the stock market to a new all-time intraday high.
The benchmark Pakistan Stock Exchange (PSX) KSE-100 climbed to an intraday high of 174,411.72, gaining 2,010.99 points or 1.17% and settled at a low of 173,200.41, reflecting a gain of 799.68% or 799.68%.
“The bullish activity was seen as investors eye the UAE’s $1 billion convertible bond due to expire, acquiring shares in Fauji Foundation,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
“Government conference on the privatization of troubled state enterprises [state-owned enterprises]the stability of the rupee and the rise in global crude oil prices played a catalytic role in the bullish activity on the PSX,” he added.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE is to acquire shares in the Fauji Foundation as part of ongoing economic cooperation, adding that the transaction is expected to help settle the $1 billion liability, while an additional $2 billion loan could be rolled over.
He said the understanding followed a visit by the UAE president and expressed hope that the stake acquisition would be completed by March 31, 2026. Islamabad is also seeking to persuade the UAE to reinvest $2 billion due in January.
“Ishaq Dar’s recent comment on the possible acquisition of Fauji Group shares by the UAE has sparked a rally in Fauji Group companies, driving the market mostly higher today,” said independent investment and financial analyst AAH Soomro. He also added: “The general uptrend continues.”
Commenting on the record high, adviser to finance minister Khurram Schehzad said in a post on X that the KSE-100 index crossing 174,400 points marked “yet another record high”.
He noted that since January 2025, the PSX has delivered over 50% returns in US dollars and that the equity investor base has exceeded 450,000, up by more than 120,000 investors (+37%) in 18 months.
On Friday, the KSE-100 closed higher by 1,570.51 points, or 0.92%, at 172,400.73 from 170,830.22, after trading between a high of 172,582.96 and a low of 171,146.14.
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