PSX hits uncharted highs in bullish week on liquidity surge |
KARACHI: The Pakistan Stock Exchange (PSX) opened the new calendar year on a buoyant note, posting robust gains in the first full trading week as abundant liquidity and expectations of further monetary easing propelled equities to record highs.
The benchmark KSE-100 index surged past the 187,000-point mark during the early sessions, touching uncharted territory before profit-taking in the latter half of the week pared some of the advance.
The rally was largely driven by excess liquidity flowing into equities in the absence of compelling alternatives, coupled with growing optimism that another rate cut is on the cards as consumer inflation continues to decelerate. However, the last two sessions saw investors lock in gains, trimming weekly returns.
Despite being among the world’s fastest-growing equity markets, the PSX has failed to attract foreign investors, even as it delivered massive returns in calendar year 2025. Data from the State Bank of Pakistan (SBP) show net foreign outflows of $393 million from the equity market during the first half of FY26, against inflows of $142m, underscoring persistent caution among overseas investors.
Index scales fresh highs as easing inflation and policy rate cut hopes fuel local........