Pakistan Stock Exchange Surges to 133,000 Points
The PSX's strong performance is attributed to improved macroeconomic indicators, including easing inflation and a narrowing trade deficit, as well as increased inflows into banking and equity investments. The exchange's market capitalization and average daily turnover have also seen significant growth, with the KSE-100 index rising 6.1% to a record high of 131,949.06 points.
The Pakistan Stock Exchange (PSX) continued its rally, with the benchmark KSE-100 Index crossing 133,000 points, gaining 1,187.99 points or 0.9% during intra-day trading, driven by investor optimism surrounding potential policy clarity and improving macroeconomic indicators.
Analysts attribute the positive momentum to easing inflation and lower electricity tariffs, with the Consumer Price Index (CPI) figures for June 2025 coming in at 3.2% year-on-year, bringing the average CPI for FY25 to 4.5%. The trade deficit also saw a 9% month-on-month decline in June 2025, clocking in at $2.3 billion. The PSX Market Capitalization in Rupees grew by 5.6% to 15.910 trillion, with the Ready board Average Daily Turnover (ADTO) jumping 31.4% to 967.27 million shares.
The strong start to the fiscal year follows an impressive performance in FY25, where the PSX emerged as the best-performing market in the region, delivering a total return of 60%. The market momentum was driven by increased inflows into banking, provident/pension funds, savings, and fixed deposits, with equity investments seeing a 7.15% increase. External inflows were bolstered by positive market sentiment, driven by Pakistan securing $3.4 billion rollover/refinancing from China and an additional $1.5 billion loan from Middle Eastern commercial banks and multilateral institutions.
The bullish momentum is expected to persist in the near term, driven by positive investor sentiment, macroeconomic stability, and relatively low equity valuations. Arif Habib Ltd expects the KSE-100 index to continue its upward trend, with the PSX emerging as the best-performing asset class in FY25, delivering a stellar return of 60.15%.