The Pakistan Stock Exchange (PSX) is projected to reach 203,000 points by December 2026 but could reach just 187,000 if the US-Iran war stays and oil prices stay elevated.
According to Topline Securities, the base-case outlook for PSX remains constructive, supported by expectations of macroeconomic stability, improving liquidity, and gradual policy continuity.
Under this scenario, the KSE-100 index is expected to maintain its upward trajectory through FY27.
Still, the outlook is not one-directional.
In a risk-adjusted scenario, rising global oil prices, renewed Middle East tensions, and other geopolitical shocks could weigh on Pakistan’s external account and inflation outlook. This would pressure market sentiment and reduce the index target to 187,000.
Pakistan’s equity market remains highly sensitive to global commodity cycles, particularly crude oil, given its heavy import dependency. Any sustained escalation in war-driven oil price spikes could quickly alter earnings forecasts and valuation multiples.
Topline’s base-case projection of 203,000 reflects expectations of earnings growth and relatively stable domestic policy conditions. Investors are expected to focus more on macro stability than aggressive fiscal expansion next fiscal year.
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It’s funny.
When psx was rising. Prices didn’t go down.
When psx is going down. Prices are still high
Hahahaha hahaha