The stock market rose on Monday as optimism over a potential United Arab Emirates (UAE) investment in the Fauji Foundation, with a $1 billion refinancing liability deal, boosted risk appetite and drove the stock market to a new all-time intraday high.
The Pakistan Stock Exchange (PSX) benchmark KSE-100 index rose to an intraday high of 174,411.72, gaining 2,010.99 points, or 1.17%, and recorded a low of 173,200.41, reflecting a gain of 799.68 points, or 0.46%.
“Bullish activity was seen as investors contemplate the end of the UAE’s billion-dollar rollover obligation by acquiring a stake in the Fauji Foundation,” said Ahsan Mehanti, MD and CEO of Arif Habib Commodities.
“Government deliberation on the privatization of state-owned enterprises in difficulty [state-owned enterprises]the stability of the rupee and the rise in global crude oil prices played a catalytic role in the bullish activity in PSX,” he added.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE will acquire shares in the Fauji Foundation as part of ongoing economic cooperation, adding that the transaction is expected to help clear a liability of $1 billion, while an additional loan of $2 billion could be renewed.
He said the understanding came following the visit of the UAE President and expressed hope that the share acquisition would be completed by March 31, 2026; Islamabad is also trying to persuade the United Arab Emirates to reinvest the $2 billion that matures in January.
“Ishaq Dar’s recent comment on the UAE’s possible acquisition of Fauji Group shares has sparked a rally in Fauji Group companies, driving the market predominantly higher today,” said independent economic and investment analyst AAH Soomro. He added: “General optimism continues.”
Commenting on the record, Finance Minister’s advisor Khurram Schehzad said in a post on X that the KSE-100 index crossing 174,400 points marked “yet another record.”
He noted that since January 2025, the PSX has generated returns of over 50% in US dollar terms, and that the stock’s investor base has surpassed 450,000, an increase of more than 120,000 investors (+37%) in 18 months.
On Friday, the benchmark KSE-100 index closed up 1,570.51 points, or 0.92%, to 172,400.73 from 170,830.22, after trading between a high of 172,582.96 and a low of 171,146.14.
