The Pakistan Stock Exchange began the new year on a firm footing as bullish sentiment lifted equities in early Thursday trading, pushing the benchmark KSE-100 Index sharply higher within minutes of the opening bell.
By 9:35am, the index had climbed to 174,755.54 points, up 701.22 points, representing a 0.40% increase from the previous close. The early rally reflected renewed investor confidence after profit-taking weighed on the market in the final session of last year.
Gains were broad-based, with strong buying interest seen in commercial banks, oil and gas exploration firms, and oil marketing companies (OMCs). Heavyweight stocks such as OGDC, Pakistan Oilfields, PPL, PSO, MCB Bank, and UBL all traded in positive territory, providing significant support to the index.
Despite the upbeat market start, concerns lingered on the fiscal front. Provisional data showed that the Federal Board of Revenue (FBR) collected Rs6,154 billion during the first half of the current fiscal year (July–December 2025–26), falling short of the Rs6,490 billion target by Rs336 billion. The revenue gap, particularly weak December collections, could compel the government to implement contingency measures under its agreement with the International Monetary Fund.
The strong opening followed a subdued close on Wednesday, when the PSX ended the year lower amid profit-booking. The KSE-100 Index had shed 418.45 points to close at 174,054.32 in the final trading session of 2025.
Global cues remained mixed. US equities ended lower overnight, with Wall Street benchmarks easing on the last trading day of the year amid thin volumes. Investors locked in profits after a volatile 12 months marked by geopolitical tensions, fluctuating tariff risks, currency weakness, and intense enthusiasm around artificial intelligence stocks.
While US markets posted solid annual and quarterly gains, modest declines were recorded in the S&P 500 and Nasdaq for the month, underscoring a cautious finish to an otherwise resilient year for global equities.
