KARACHI: The Pakistan Stock Exchange (PSX) climbed to a fresh all-time closing high on Monday, as investors brushed aside signs of economic weakness and continued accumulating equities in anticipation of another policy rate cut later this month.
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The benchmark index rallied as much as 2,783 points during intraday trading before closing at 187,761, up 2,662 points or 1.44 per cent, according to data compiled by Topline Securities Ltd. Analysts said bullish momentum remained intact as market participants priced in a likely 50-basis-point cut at the monetary policy announcement scheduled for January 26.
Improving corporate earnings, upbeat Treasury bill and Pakistan Investment Bond auction signals, and expectations of further monetary easing helped sustain broad-based buying. Engro Holdings, United Bank, Hub Power, Fauji Fertiliser, Meezan Bank and Service Industries contributed a combined 1,554 points to the index, while selective interest was also seen in Nishat Mills, Adamjee Insurance, IGI Holdings and Lucky Cement.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the rally demonstrated confidence in forthcoming corporate results and optimism about the pace of monetary easing. He added that investors continued positioning for improved liquidity as interest rates decline.
On the corporate side, hydrocarbons were discovered in the Tal Block, with estimated gas production of 1.37 million cubic feet per day. MOL operates the block with a 10pc stake, while Pakistan Petroleum and OGDC hold 30pc each, Pakistan Oilfields 25pc and Government Holdings (Pvt) Ltd 5pc.
However, macroeconomic indicators showed signs of stress. Pakistan registered a current account deficit of $244 million in December 2025, reversing surpluses recorded a year earlier. The first half of FY26 posted a deficit of $1.17 billion, compared with a surplus of $957m in the same period last year. The country also witnessed a net FDI outflow of $135m in December.
Market turnover rose 24.9pc to 1.19bn shares, though traded value slipped 8.15pc to Rs63.8bn. Bank Makramah Ltd led volumes with 247m shares.
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Analysts expect momentum to continue as long as monetary easing remains on the horizon, though they caution that volatility may re-emerge amid fragile macroeconomic fundamentals.