PSX soars past 133,000 on trade optimism, stable outlook

• The KSE-100 Index closed at 133,370.14, up 1,421.08 points, or 1.08%.
• The index hit an intraday high of 133,862.01, gaining 1,912.95 points, or 1.45%.
• The session’s low was recorded at 132,467.12, still up 518.06 points, or 0.39%.

The equity market extended its bullish streak into the new week, surging past the 133,000 level for the first time ever in intraday trade, bolstered by optimism over trade negotiations, macroeconomic stability, and a robust earnings outlook.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 133,370.14 points, up 1,421.08 points, or 1.08%, from the previous close of 131,949.06.

During the session, the index climbed to an intraday high of 133,862.01, gaining 1,912.95 points, or 1.45%, and recorded a low of 132,467.12, reflecting a gain of 518.06 points, or 0.39%.

“Tariff deal and continued optimism is fuelling the rally. Technically, we’ve breached multiple new highs. Earning season is also around the corner, so all this is fuelling the rally at the moment,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.

Investor sentiment remains buoyant amid falling inflation, strengthening foreign exchange reserves, and renewed capital inflows. Analysts anticipate the positive momentum will continue, supported by a shift in investment from fixed income to equities due to higher taxation on alternative assets and lower yields.

The PSX ended FY25 as the region’s best-performing market, delivering a 60% total return. That momentum has carried into FY26, lifting the KSE-100 Index into uncharted territory. Average daily traded volumes (ADTV) surged by 31% WoW, indicating heightened investor participation.

The rally has been underpinned by macroeconomic confidence. Pakistan secured $3.4 billion in Chinese rollover and refinancing, alongside another $1.5 billion from Middle Eastern lenders and multilateral partners. 

The rally has been underpinned by macroeconomic confidence. Pakistan secured $3.4 billion in Chinese rollover and refinancing, alongside another $1.5 billion from Middle Eastern lenders and multilateral partners.

The State Bank of Pakistan’s (SBP) reserves stood at $14.51 billion as of June 30.

Inflation data reinforced bullish sentiment. The Consumer Price Index (CPI) for June slowed to 3.2% YoY, bringing FY25’s average inflation to 4.5%, a steep fall from 23.4% in FY24. This opens room for potential interest rate cuts, enhancing the investment case for equities.