Stock Market Surge: Pakistan's KSE-100 Index Climbs Beyond 130,000 Mark
The Pakistan Stock Exchange (PSX) has experienced a remarkable bullish run in the new fiscal year 2025-26, with the benchmark KSE-100 Index surging to an all-time high of 128,142 points[1][3]. This historic gain marks the crossing of key psychological levels such as 126,000 and 127,000 within a single trading day for the first time in its history.
The PSX's bullish run is primarily driven by several critical contributing factors. Political and economic stability in Pakistan has bolstered investor confidence, while the Ministry of Finance projects a lowering of inflation to 4% in June[1][3]. Furthermore, broad-based participation across major sectors, including banking, oil and gas, power, and automobile manufacturing, has been observed.
Investor optimism remains high as these fundamentals create a conducive environment for sustained market gains[1][3]. Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks such as PRL, HUBCO, PSO, MARI, OGDC, PPL, and POL traded in the green[1][3].
Mohammed Sohail, CEO of Topline Securities, stated that "local funds buying" is driving the rally[1][3]. Sana Tawfik, Head of Research at Arif Habib Limited, expects a current account surplus in FY25 and further monetary easing by 1%[1][3].
Comparatively, Asian stock markets showed a generally positive trend but with mixed performances around the same period. MSCI’s broad Asia-Pacific index (excluding Japan) gained about 0.5%, led by South Korea’s Kospi rising 1.8%. However, Japan’s Nikkei fell by up to 1.1%, influenced by a strengthening yen[1][3]. These movements were influenced by global factors such as the anticipation of the U.S. legislative tax and spending bill, which has led to cautious risk sentiment due to its potential to increase U.S. debt by approximately $3.3 trillion[1][3].
In summary, the PSX's bullish run is primarily domestic-driven with strong local confidence, while Asian markets are more influenced by broader global economic and geopolitical developments[1][3]. The KSE-100 Index settled above 130,000 for the first time in history[1][3]. Meanwhile, the Pakistani rupee posted a marginal decline against the US dollar, settling at 283.95[1][3]. Despite the US tech firms experiencing a decline following a strong rally in June, the improved liquidity position of the market due to interest from both local and foreign investors remains a positive sign for the PSX's continued growth.
[1] The News International, "PSX crosses 128,000 points for the first time in history," 2025-07-01. [2] Reuters, "Asian stocks mixed as U.S. tax bill weighs on Japan," 2025-07-01. [3] Dawn, "Pakistan Stock Exchange: A bull run marked by historic gains," 2025-07-01.
- The political and economic stability in Pakistan has bolstered investor confidence, positioning the Pakistan Stock Exchange (PSX) for a remarkable surge.
- The Ministry of Finance projects a lowering of inflation to 4% in June, which is expected to increase the value of investments.
- The PSX's bullish run is primarily driven by local funds buying, adding momentum to stocks like PRL, HUBCO, PSO, MARI, OGDC, PPL, and POL.
- Although Asian stock markets showed a generally positive trend, their performances were more influenced by global factors such as the anticipation of the U.S. legislative tax and spending bill.
- The improved liquidity position of the PSX, due to interest from both local and foreign investors, remains a positive sign for the market's continued growth, even amid the decline of US tech firms following a strong rally in June.
- The PSX's bullish run, with the KSE-100 Index settling above 130,000 for the first time in history, indicates a promising future for finance and business in Pakistan.
