PSX rallies to new all-time high as inflation eases

• KSE-100 Index closed at 130,344.03, gaining 2,144.61 points or 1.67%.
• It recorded an intraday high of 130,545.94, up 2,346.52 points, or 1.83%.
• Index touched a session low of 128,616.11, rising 416.69 points or 0.33%.

The bourse continued its record-setting momentum on Wednesday, trading at a new all-time high, crossing the 130,000 points mark for the first time ever, on the back of favourable inflation data and policy relief in the energy sector.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at a new all-time high of 130,344.03 points, up 2,144.61 points, or 1.67%, from the previous close of 128,199.42. 

During the session, the index climbed to an intraday high of 130,545.94, gaining 2,346.52 points, or 1.83%, and touched a low of 128,616.11, up 416.69 points, or 0.33%.

“Stocks trading at new all-time high amid upbeat data on CPI inflation at 3.2% YoY for June ’25 and government projections for surging exports and inflation at 5–7% in FY26,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"Government abolishment of ED (duty) on industrial power tariff and surging global crude oil prices played catalyst role in bullish activity at PSX,” he added.

Pakistan’s headline inflation eased to 3.23% year-on-year in June 2025, driven by decline in food, utilities, and essential consumer prices, according to official figures released on Tuesday. 

The annual average inflation for FY2024-25 stood at 4.49%, marking the lowest reading in nearly a decade and supporting market expectations for another interest rate cut by the State Bank of Pakistan (SBP), which has already slashed rates from a peak of 22% to 11%.

The slowdown in cost pressures was led by a fall in food inflation, which declined to 2.56% in June, down from 3.07% in May. Perishable food prices remained in deflation for the sixth consecutive month, though the pace eased to -10.55% from -9.2% in May.

On Tuesday, the KSE-100 surged by 2,572.11 points, or 2.05%, to close at 128,199.42, up from 125,627.31 a day earlier. The index touched an intraday high of 128,475.69 and a low of 126,113.27, marking its highest-ever close and capping a strong start to the new fiscal year.