Buying momentum continued at the Pakistan Stock Exchange (PSX) on Monday, as the benchmark KSE-100 Index surged by more than 1,900 points, driven by positive investor sentiment and improved macroeconomic indicators.
The bullish trend dominated the trading session, with the KSE-100 Index touching an intra-day high of 161,881.45 points before closing at 161,538.40, marking a strong gain of 1,945.50 points, or 1.22%.
Market confidence was reinforced after the Finance Division revealed that Pakistan posted a budget surplus of Rs 2.1 trillion, equivalent to 1.6% of GDP, during the first quarter (July–September) of the current fiscal year. The surplus was seen as a sign of improved fiscal management and stability in government finances.
Adding to the optimism, Topline Securities issued a report forecasting that the KSE-100 Index could reach 203,000 points by December 2026, implying a total return of around 26%, including a 7% dividend yield.
This recovery follows a weak performance last week when the index fell by 2,038 points (1.3%), amid persistent geopolitical uncertainty and weak economic indicators.
On the international front, global stock markets also showed signs of strength on Monday. Optimism grew after the US Senate advanced a measure to reopen the federal government, potentially ending the 40-day government shutdown that had disrupted federal services and slowed the economy.
The news lifted Nasdaq futures by 1.2%, S&P 500 futures by 0.7%, and EUROSTOXX 50 futures as well as DAX futures by over 1%. The FTSE gained 0.85%, while MSCI’s Asia-Pacific index (excluding Japan) climbed 1%, and Japan’s Nikkei advanced 0.97%.
Meanwhile, in China, the CSI300 slipped 0.24%, while Hong Kong’s Hang Seng Index rose 0.6%, reflecting mixed regional trends.
Analysts at the PSX noted that investor optimism was fueled by improving fiscal performance and expectations of sustained stability in the local economy. However, they cautioned that external geopolitical factors and domestic inflation trends could still influence market direction in the coming weeks.
