Shares on the exchange rose on Monday, crossing the 190,000 mark for the first time, as traders awaited the decision of the State Bank’s monetary policy committee, amid signs of stabilization between the United States and Iran and expectations of a 50 basis point cut.
The Pakistan Stock Exchange’s benchmark KSE-100 index traded between a high of 191,032.73, up 1,865.91 points, or 0.99 percent, and a low of 189,712.78, up 545.96 points, or 0.29 percent, from the previous close of 189,166.82.
“The market opened on a higher note amid signs of stabilization on the US-Iran front as investors remained cautious at the start of the weekend after media reports of a shift in US assets to the Middle East,” said Huzaifa Riaz, director, Mayari Securities (Pvt) Limited.
“Focus now shifts to today’s decision by the Monetary Policy Committee, where consensus expects a 50 basis point rate cut – any dovish surprises could trigger fresh optimism in stocks,” he added.
Analysts see a positive tone in the near term as investors position themselves for further monetary easing and reform momentum. Falling yields, improving external indicators and stable political conditions support risk appetite.
Confirmation of rate cuts could prolong the recovery, although profit-taking close to record levels remains a risk.
Some brokerages forecast the index to reach 263,800 by December 2026, with sentiment buoyed by the prospect of foreign portfolio and direct investment inflows as well as improving ties with key partners.
To add to this optimism, in December 2025, the current account recorded a deficit of $244 million and foreign direct investment recorded a net outflow of $135 million.
Electricity production increased 8.8% year-on-year, while information technology exports reached a record $437 million (up 26%). Foreign exchange reserves of the State Bank of Pakistan (SBP) increased by $16 million to $16.1 billion, and the rupee appreciated by 0.03 percent to 279.86 per US dollar.
Over the previous week, the KSE-100 gained 4,068 points (2.2% WoW) to close at 189,167, with average daily volumes up 8.7% to 1.3 billion shares. On Friday, the benchmark index rose 1,478.66 points (0.79%) to 189,166.83 after moving between 189,566.64 and 186,637.57.
