PSX Hits Historic High as KSE 100 Closes Above 189000

Pakistan Stock Exchange reached a new milestone on the final trading day of the week as the benchmark KSE 100 Index closed above the 189000 level for the first time in history on Friday.

The market ended the session at 189167 points, gaining 1479 points or 0.79 percent. This marked another record closing for the index, reflecting strong investor confidence and heavy buying in select sectors.

Market activity remained calm during the morning session, with the index moving within a narrow range between 187000 and 188000 points. However, momentum picked up sharply in the afternoon session. Buying interest surged after market speculation regarding a possible stock split in Fauji Fertilizer Company, which helped push the index to a fresh all time high by the close.

According to market experts, the fertilizer sector played a key role in driving the rally. Fauji Fertilizer Company alone contributed more than 1500 points to the index. Other stocks including Engro Fertilizers, Pakistan Oilfields, Hub Power, and Engro Holdings also supported the upward move.

On the economic front, the Sensitive Price Indicator data for the week ending January 22, 2026 showed a year on year increase of 4.18 percent, while recording a week on week decline of 0.48 percent. This trend suggests easing short term inflationary pressure, which further boosted investor sentiment.

Despite the overall positive performance, some heavyweight stocks faced selling pressure. Pakistan International Container Terminal, Oil and Gas Development Company, United Bank Limited, National Bank of Pakistan, and Pakistan Petroleum Limited collectively dragged the index lower by nearly 480 points.

Trading volumes remained strong throughout the session. A total of 875.49 million shares were traded, with market turnover reaching 58.5 billion rupees. K Electric led the volume chart, with more than 141 million shares exchanged.

Weekly Market Performance

The Pakistan Stock Exchange delivered a solid performance during the week, with the KSE 100 Index gaining 4068 points or 2.2 percent overall. The index opened the week at 186151 points, touched an intra week high of 189567 points, and recorded a low of 186127 points before closing at a historic high.

Market Outlook

Investors are now closely watching the upcoming Monetary Policy Committee meeting scheduled for Monday, January 26, 2026. The market is expecting an interest rate cut ranging between 50 to 100 basis points. The central bank’s decision is likely to play a crucial role in determining the short term direction of the stock market.

If a rate cut is announced, analysts believe it could further support equities, especially in sectors such as banking, cement, and fertilizers.

also read Pakistan Stock Exchange stages strong rebound as KSE-100 jumps over 3,600 points

Frequently Asked Questions

Why did the PSX reach a new record high?

The market rose mainly due to strong buying in fertilizer stocks, easing inflation indicators, and expectations of an interest rate cut in the upcoming monetary policy meeting.

Which stock contributed the most to the index gain?

Fauji Fertilizer Company was the biggest contributor, adding over 1500 points to the KSE 100 Index amid stock split rumors.

What is the significance of the Monetary Policy meeting?

The policy decision will influence borrowing costs and investor sentiment. A rate cut could encourage further investment in equities.

Is this a good time to invest in PSX?

Market performance depends on individual risk appetite. Investors should focus on fundamentally strong stocks and stay informed about economic and policy developments.

also read Pakistani Rupee Extends 86-Day Winning Streak Against US Dollar

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