PSX Extends Record Rally as KSE-100 Crosses 133,000 Mark

Investor Optimism Fuels Pakistan Stock Exchange’s Bullish Momentum in FY26

by Khashif Sarfraz
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PSX Hits New High as KSE-100 Surpasses 133,000 Points in Bullish Surge

The Pakistan Stock Exchange (PSX) continued its record-setting trend on Monday, July 7, 2025, with the KSE-100 Index gaining 1,187.99 points (0.9%), reaching an intra-day level of 133,137.05. This marks another historic milestone following last week’s bullish kickoff to the new fiscal year.

  • Intra-day high: 133,156.63

  • Intra-day low: 132,467.12

  • Trading volume: 41 million shares

  • Total traded value: Rs 3.39 billion

Bullish Start to FY26 Continues

Last week, the KSE-100 surged to a record 131,949.06, closing the week with a 7,570-point gain (6.1%) — the highest ever weekly close in the PSX’s history.

Economy

According to Arif Habib Limited (AHL), the index rallied from 125,627.31 to 131,949.06, driven by a blend of improving macroeconomic data, foreign portfolio inflows, and renewed investor confidence.

Key Drivers of Market Rally

  • 📉 Easing Inflation:
    Pakistan’s June 2025 inflation fell to 3.2%, down from 3.5% in May, with FY25 average inflation at 4.5%, a dramatic drop from 23.4% in FY24.

  • Lower Electricity Tariffs:
    The government’s FY26 decision to reduce average power tariffs by PKR 1.1/KWh supported business sentiment.

  • 💸 Foreign Inflows:
    Increased interest from foreign institutional investors buoyed market confidence.

  • 📈 Strong FY25 Performance:
    PSX closed FY25 as the best-performing regional exchange, delivering a 60% annual return — a key factor boosting continued investor enthusiasm.

Market Sentiment

Analysts at JS Global noted that the strong finish to FY25 combined with a positive macro outlook has elevated sentiment across all sectors. The 31% week-on-week jump in average daily turnover (ADTO) further confirms broad-based investor participation.

“The momentum in FY26 reflects market confidence in upcoming policy clarity and macro stability,” said Syed Danyal Hussain of JS Global.

Outlook: Can the Rally Sustain?

With a favorable macroeconomic backdrop, continued foreign interest, and policy clarity expected from the new government, the PSX may continue its upward trajectory. However, traders are advised to stay cautious around profit-taking phases as volatility may increase at record levels.

Conclusion:
The PSX’s bull run shows no signs of slowing down. With the KSE-100 Index breaching 133,000 points, market participants are eyeing new milestones. If macro fundamentals continue to improve, FY26 could shape up to be another record-breaking year for Pakistani equities.

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