Pakistan’s equity market extended its rally on Monday, with strong investor optimism over a potential United Arab Emirates investment in the Fauji Foundation.
The benchmark KSE-100 Index at the Pakistan Stock Exchange climbed to an intraday high of 174,411.72 points. This was up 2,010.99 points, or 1.17%. The index later touched an intraday low of 173,200.41, still up 799.68 points, or 0.46%. This reflects sustained buying interest.
Market participants attributed the bullish momentum to expectations that the United Arab Emirates may acquire a stake in the Fauji Foundation. This is part of broader economic cooperation. The proposed transaction is linked to the settlement of a $1 billion rollover liability. Investors see this as a positive signal for Pakistan’s external financing outlook.
Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar said over the weekend that the UAE is expected to acquire shares in the Fauji Foundation. This would help resolve the $1 billion liability. He added that discussions are underway to roll over an additional $2 billion in loans. This could further ease near-term financing pressures.
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Analysts said the comments sparked a rally in Fauji Group companies. This rally, in turn, lifted the broader market. Additionally, positive developments around the privatisation of loss-making state-owned enterprises, relative stability in the rupee, and rising global oil prices also supported risk appetite.
According to market data, the PSX has delivered returns exceeding 50 percent in US-dollar terms since January 2025. During this period, the number of equity investors has crossed 450,000. This reflects an increase of over 120,000 participants, or about 37 percent, in the past 18 months.
The strong start to the week followed a bullish close on Friday. On that day, the KSE-100 Index advanced 1,570.51 points, or 0.92%, to 172,400.73. During that session, the index traded between a high of 172,582.96 and a low of 171,146.14.
Market observers say sustained foreign interest, improving macroeconomic signals, and policy clarity will remain key drivers for equities in the near term.
