ISLAMABAD: In Pakistan, the stock market is hitting a new record every day, stunning the corporate circles in people in the country. Why is the PSX setting a new milestone every day?
On Wednesday, the Pakistan Stock Exchange (PSX) further extended its record-breaking rally, with the benchmark KSE-100 Index reaching an all-time intraday high amid encouraging inflation data and energy sector policy relief.
The index soared to 129,901.03 points during the session, gaining 1,701.61 points or 1.33%, while dipping to a session low of 128,616.11—still up 416.69 points or 0.33%—from Tuesday’s close of 128,199.42.
Key Factors Driving the Stock Market Upward
“Stocks are hitting new highs on the back of positive CPI inflation data at 3.2% year-on-year for June 2025 and optimistic projections for exports and inflation between 5–7% in FY2025-26,” said Ahsan Mehanti, CEO of Arif Habib Commodities.
He added that the government’s decision to abolish the electricity duty on industrial power tariffs, coupled with a rise in global crude oil prices, served as key drivers of the bullish momentum at the PSX.
Official data released Tuesday showed Pakistan’s headline inflation slowed to 3.23% YoY in June 2025, primarily due to declines in food, utility, and other essential goods prices. For the full fiscal year 2024-25, average inflation stood at 4.49%—the lowest in nearly ten years—strengthening market expectations of a further interest rate cut by the State Bank of Pakistan (SBP), which has already reduced rates from 22% to 11%.
The drop in inflation was largely driven by a decrease in food prices, with food inflation falling to 2.56% in June from 3.07% in May. Perishable food prices remained in deflation for the sixth month in a row, with the rate easing to -10.55% from -9.2% in May.
The bullish streak began on Tuesday when the KSE-100 surged 2,572.11 points, or 2.05%, closing at 128,199.42—its highest level ever. The index had touched an intraday high of 128,475.69 and a low of 126,113.27, setting the tone for a robust start to the new fiscal year.
