PSX hits new record high on UAE investment hopes

The equity market rose on Monday as investors showed strong confidence due to expected investment from the United Arab Emirates (UAE) in the Fauji Foundation. This positive news increased buying activity and pushed the stock market to a new all-time intraday high.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index reached an intraday high of 174,411.72 points, gaining 2,010.99 points (1.17%). During the session, the index also touched a low of 173,200.41 points, still showing a gain of 799.68 points (0.46%).

“Bullish activity witnessed as investors eye UAE $1 billion rollover liability set to end, acquiring shareholding in Fauji Foundation,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
He added, “Government deliberation on privatisation of ailing SOEs [state-owned enterprises], rupee stability and surging global crude oil prices played a catalyst role in bullish activity at PSX.”

Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE is expected to buy shares in the Fauji Foundation as part of economic cooperation between the two countries. He said this move would help settle a $1 billion liability, while an additional $2 billion loan could also be rolled over.

He explained that the understanding followed the UAE president’s visit and hoped the share purchase would be completed by March 31, 2026. Pakistan is also trying to convince the UAE to reinvest $2 billion due in January.

“The recent comment by Ishaq Dar on the potential acquisition of Fauji Group shares by the UAE has sparked a rally in Fauji Group companies, driving the market upwards predominantly today,” said independent investment and economic analyst AAH Soomro. He further added: “Overall bullishness continues.”

Commenting on the record level, Advisor to the Finance Minister Khurram Schehzad said in a post on X that the KSE-100 Index crossing 174,400 points marked “yet another record high.”

He also shared that since January 2025, the PSX has given over 50% returns in US-dollar terms. He added that the number of equity investors has crossed 450,000, increasing by more than 120,000 investors (37%) over the past 18 months.

On Friday, the KSE-100 Index closed higher by 1,570.51 points (0.92%) at 172,400.73, compared to 170,830.22 in the previous session. The index traded between a high of 172,582.96 and a low of 171,146.14.

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