ISLAMABAD: The Pakistan Stock Exchange (PSX) kicked off the fiscal year 2025–26 with a historic rally, as the benchmark KSE-100 index surged past the 127,000 mark for the first time on Tuesday.
The session opened on a strong bullish note, with the index adding 485 points at the opening bell. Investor momentum quickly accelerated, pushing the index up by 1,911 points to a record intraday high of 127,539 — shattering the previous peak of 126,718 set in June.
By 10:05 AM, the KSE-100 stood at 127,348.72, reflecting a gain of 1,721.41 points, or 1.37%. The rally was driven by robust buying across key sectors, including commercial banks, automobiles, oil and gas exploration, and power generation. Prominent gainers included HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP, all of which traded firmly in the green.
The strong start builds on Monday’s upbeat close, where the market ended FY2024–25 on a high note, with the KSE-100 index gaining 1,248.25 points (1%) to close at a then-record 125,627.31. Market sentiment was lifted by solid fiscal year-end inflows, increased institutional participation, and progress on securing external financing, which collectively strengthened investor confidence.
Positive momentum continues into the new fiscal year, underpinned by expectations of economic and political stability. The Ministry of Finance’s projection of a sharp decline in inflation — down to 4% in June — has further bolstered investor sentiment.
However, analysts caution that challenges remain. Recent increases in fuel prices, levies on furnace oil, and higher gas tariffs are expected to push up electricity costs, particularly as Independent Power Producers (IPPs) adjust to rising input expenses. These developments could weigh on market sentiment in the sessions ahead.
Globally, Asian stock markets traded mostly higher, buoyed by optimism over upcoming legislative developments in the U.S. Investors awaited progress on a massive tax and spending bill championed by President Donald Trump, although Senate delays have introduced uncertainty. The proposed bill, projected to add $3.3 trillion to U.S. debt, has dampened global risk appetite.
Regionally, MSCI’s Asia-Pacific index (excluding Japan) rose 0.5%, led by a 1.8% gain in South Korea’s Kospi. Japan’s Nikkei, however, dipped by up to 1.1% as a strengthening yen pressured equities. Meanwhile, oil prices declined for a second straight session, while gold saw modest gains as markets braced for key U.S. labor data due later this week.
