Pakistan’s equity market has staged an exceptional rally, with the benchmark KSE-100 Index recording a historic 7-day calendar year gain of nearly 11,000 points in 2026, marking one of the strongest short-term performances in the history of the Pakistan Stock Exchange.

Investor sentiment has remained firmly upbeat, driven by expectations of further monetary easing, an improving external account, continued reform momentum and relative political stability. The scale of the rally reflects a sharp turnaround in market confidence, with strong buying interest observed across multiple key sectors.

A comparison with previous years highlights the magnitude of the current surge. Over a seven-day calendar year period, the index gained 561 points in 2020 and 1,398 points in 2021, before moderating to 486 points in 2022 and 587 points in 2023 amid heightened macroeconomic uncertainty. Momentum improved in 2024, when the index advanced by 2,064 points, followed by a gain of 1,128 points in 2025, setting the stage for the unprecedented rally seen so far in 2026.

Market participants attribute the strong upswing this year to improving macroeconomic indicators, easing inflation expectations, growing optimism around monetary easing and sustained participation from both local and foreign institutional investors. Attractive equity valuations and renewed confidence in economic reforms have further reinforced the bullish trend. Sectoral growth, coupled with a 6 percent increase in oil marketing company sales in December, has also added to market momentum.

From a longer-term perspective, historical data shows that the PSX has often struggled to maintain momentum in the second half of the fiscal year, with several periods between FY13 and FY23 recording weaker or negative performance after a stronger first half. In contrast, recent years indicate a shift in this pattern. Both FY24 and FY25 delivered strong first-half gains and remained positive in the second half.

So far in FY26, the market has already posted a robust 38.55 percent return in the first half. If recent trends persist, analysts believe the second half of the fiscal year could also remain supportive.

During the ongoing trading session, the KSE-100 Index was trading at 185,956.24, up 894.14 points, or 0.48 percent. The index moved within a wide intraday range of 1,871 points, touching a high of 186,768.06, while the day’s low was recorded at 184,896.70. Total volumes on the index stood at 216.71 million shares, reflecting elevated trading activity.