Market Milestone: PSX Surges Past 190,000 Mark as KSE-100 Hits Historic Peak

KARACHI — The Pakistan Stock Exchange (PSX) made history on Monday, January 26, 2026, as the benchmark KSE-100 Index breached the psychological barrier of 190,000 points for the first time. Driven by aggressive buying ahead of the State Bank of Pakistan’s (SBP) monetary policy announcement, the market witnessed a spectacular rally, reflecting high investor confidence in continued economic easing.

PSX Record-Breaking Session

• Opening Surge: Gained 1,288 points within the first hour of trading.
• Intraday High: Touched an unprecedented peak of 190,522.06 points.
• Daily Gain: An overall increase of 1,355 points (+0.72%).
• Current Status: Benchmark index last hovering near 190,474 points.
• Key Drivers: Anticipation of a 50–100bps rate cut and falling T-bill yields.

Monetary Policy Hopes Fuel Buying Frenzy

The primary catalyst for today’s record-breaking momentum is the Monetary Policy Committee (MPC) meeting scheduled for later today. With inflation easing to 5.6% in December, analysts and institutional investors are banking on further monetary easing.

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“The market is pricing in a significant rate cut,” noted one senior analyst at Arif Habib Ltd. This sentiment has triggered a massive shift in capital from fixed-income instruments to equities, as secondary market yields on Treasury bills have already dropped to single digits for the first time in four years.

Sector Performance: Blue-Chip Stocks Lead the Charge

The rally was broad-based but led by index-heavy sectors. Notable interest was seen in:

• Energy & Power: HUBCO, OGDC, and PPL traded in the green following rumors of a circular debt resolution.
• Fertilizer: FFC and ENGROH saw strong buying, fueled by speculation regarding stock splits.
• Banking: HBL and MCB contributed significantly as the financial sector remains a preferred asset class.
• Refinery & Cement: Buying interest was observed in ATRL and Lucky Cement amid improving industrial outlooks.

Next Steps and Expectations

Investors are now closely watching the SBP Governor’s press conference expected this evening.

• If a 100bps cut is announced: Market participants expect the KSE-100 to target the 194,000 level in the coming sessions.
• If the status quo is maintained: A brief period of profit-taking may follow after the recent historic run-up.

This video highlights the historic market peak reached today and provides expert analysis on how the State Bank’s upcoming interest rate decision is impacting investor sentiment.