KARACHI: The Pakistan Stock Exchange (PSX) surged past the 190,000 mark for the first time on Monday, driven by expectations of a 50-basis-point cut by the State Bank of Pakistan (SBP) and easing geopolitical tensions between the US and Iran.
Read More: PSX rebounds, gains 655 points to close at 187,688
The benchmark KSE-100 Index touched an intraday high of 191,032.73, rising 1,865.91 points, or 0.99%, before settling closer to 189,788.67. The previous close was 189,166.82, highlighting strong investor optimism at the start of the week.
PSX just crossed 190K. 10K short of 200K. pic.twitter.com/Pkov6iAFMW
— Fazal Nadeem (@fazalnadeem) January 26, 2026
“The market opened on a higher note amid signs of stabilisation on the US-Iran front, as investors remained cautious ahead of the weekend after reports of US assets moving toward the Middle East,” said Huzaifa Riaz, Director at Mayari Securities. “Focus now shifts to the Monetary Policy Committee decision, where a 50bps rate cut is widely expected. Any dovish surprise could further fuel equities.”
Analysts noted that lower yields, improving external indicators, and stable political conditions are supporting risk appetite. Confirmation of the anticipated rate cut could extend the rally, though profit-taking at record levels remains a potential headwind.
Some brokerage houses forecast the KSE-100 Index could reach 263,800 by December 2026, supported by prospective foreign portfolio inflows, direct investments, and improving relations with key international partners.
Recent economic indicators also bolstered investor confidence. In December 2025, the current account recorded a $244 million deficit, foreign direct investment saw a net $135 million outflow, power generation rose 8.8% year-on-year, and IT exports hit a record $437 million, up 26%. Meanwhile, SBP’s foreign-exchange reserves increased to $16.1 billion, and the rupee appreciated slightly to 279.86 per US dollar.
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Over the previous week, the KSE-100 Index gained 4,068 points (2.2% WoW), with average daily volumes up 8.7% to 1.3 billion shares, reflecting strong market momentum ahead of the SBP announcement.