KARACHI (MNN); The equity market advanced on Monday as investor sentiment improved on expectations of a potential United Arab Emirates (UAE) investment in the Fauji Foundation, linked to the settlement of a $1 billion rollover liability, pushing stocks to a fresh all-time intraday peak.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched an intraday high of 174,411.72, up 2,010.99 points or 1.17%, while the session low stood at 173,200.41, still showing a gain of 799.68 points or 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.
“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,” he added.
Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said on Saturday that the UAE is expected to acquire shares in the Fauji Foundation as part of broader economic cooperation. He noted that the move would help resolve a $1 billion liability, while an additional $2 billion loan may be rolled over.
He said the understanding followed the UAE president’s visit and voiced optimism that the share acquisition would be finalised by March 31, 2026. Islamabad 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 added: “Overall bullishness continues.”
Reacting to 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 pointed out that since January 2025, the PSX has generated more than 50% returns in US-dollar terms, while the number of equity investors has exceeded 450,000, reflecting an increase of over 120,000 investors, or 37%, in the past 18 months.
On Friday, the KSE-100 Index had already closed higher by 1,570.51 points, or 0.92%, at 172,400.73, compared with 170,830.22 a day earlier, after moving between a high of 172,582.96 and a low of 171,146.14.
