ISLAMABAD: Pakistani stocks climbed to a fresh all-time high on Wednesday, with the benchmark KSE-100 Index crossing the 186,000-point mark for the first time as strong institutional buying and optimism over earnings and potential foreign inflows lifted market sentiment.

The index rose 1,456.61 points, or 0.79%, to close at 186,518.71, up from 185,062.10 a day earlier. During intraday trading, it briefly surged past 187,000 points before easing slightly by the close.

Analysts said the rally reflected growing confidence among local and global investors, supported by expectations around corporate earnings and signals of progress on Pakistan’s fiscal and energy-sector challenges.

Pakistan’s stock market has gained momentum at the start of 2026 as broad-based institutional buying across key sectors has reinforced investor confidence, even as the country continues to navigate economic reforms under international lending programs.

“Bullish global equities, and government deliberations to resolve circular debt and manage fiscal deficit played catalyst role in record close at PSX,” Ahsan Mehanti, Chief Executive Officer at Arif Habib Commodities, told Arab News.

The strong momentum has carried over decisively into the new year. Pakistani brokerage Topline Securities said stocks have gained more than 12,000 points in the first five trading sessions of 2026, marking one of the market’s strongest starts to a calendar year.

“Optimism has carried over decisively into 2026, with the PSX gaining a robust 12,464 points (+7.2 percent) in the first five trading sessions of the year,” Topline Securities said in its daily market review posted on X.

“This powerful start reflects sustained investor confidence, driven largely by aggressive buying from local funds.”

Topline added that declining returns on fixed-income instruments have prompted a shift in asset allocation toward equities, a trend that is expected to continue supporting liquidity and elevated stock valuations.

Heavyweight stocks including Hub Power Company Limited (HUBC), Pakistan Petroleum Limited (PPL), Engro Corporation Limited (ENGROH), Muslim Commercial Bank Limited (MCB) and Meezan Bank Limited (MEBL) were among the main contributors, together adding 766 points to the index.

Market activity remained robust, with total traded volume reaching 1.3 billion shares and turnover amounting to Rs86.1 billion ($309 million). K-Electric (KEL) led trading volumes, with 77.8 million shares changing hands during the session.