PSX hits record high on UAE investment optimism
The Pakistan Stock Exchange (PSX) surged to a new all-time intraday high on Monday as investor optimism grew over a potential United Arab Emirates (UAE) investment in the Fauji Foundation, alongside expectations of a $1 billion rollover liability settlement.
The benchmark KSE-100 Index climbed to an intraday high of 174,411.72 points, gaining 2,010.99 points, or 1.17 percent. The index later touched a low of 173,200.41, still reflecting a gain of 799.68 points, or 0.46 percent, during the session.
Market participants cited strong buying interest following reports that the UAE may acquire shares in the Fauji Foundation as part of broader economic cooperation with Pakistan.
“Bullish activity was witnessed as investors eyed the UAE’s $1 billion rollover liability settlement and potential acquisition of shareholding in the Fauji Foundation,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities. He added that government deliberations on the privatisation of loss-making state-owned enterprises, rupee stability and rising global crude oil prices further supported market sentiment.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE was expected to acquire shares in the Fauji Foundation, a move aimed at settling a $1 billion liability, while a further $2 billion loan could be rolled over. He said the understanding followed the recent visit of the UAE president and expressed hope that the share acquisition would be completed by March 31, 2026. Pakistan is also seeking to persuade the UAE to reinvest $2 billion due in January.
Independent investment and economic analyst AAH Soomro said that Ishaq Dar’s remarks had triggered a rally in Fauji Group companies, which played a major role in driving the market higher. “Overall bullishness continues,” he noted.
Reacting to the record-breaking performance, Adviser to the Finance Minister Khurram Schehzad said in a post on X that the KSE-100 Index crossing the 174,400-point mark represented “yet another record high” for the market. He highlighted that since January 2025, the PSX has delivered returns of over 50 percent in US dollar terms, while the equity investor base has grown to more than 450,000, reflecting an increase of over 120,000 investors, or 37 percent, in the past 18 months.
On Friday, the benchmark KSE-100 Index had already closed higher by 1,570.51 points, or 0.92 percent, at 172,400.73, after trading between a high of 172,582.96 and a low of 171,146.14, setting the stage for Monday’s record rally.
