The Pakistan Stock Exchange (PSX) launched the new fiscal year 2025–26 with a remarkable surge, as the KSE-100 index crossed the 127,000-point threshold for the first time in its history on Tuesday.
Trading kicked off with strong bullish sentiment, gaining 485 points right at the opening. The momentum quickly intensified, pushing the index up by 1,911 points to hit an all-time intraday high of 127,539—surpassing the previous peak of 126,718 recorded in June.
Read more: PSX Soars Amid Budget Approval, KSE-100 Gains Over 1,500 Points
By 10:05am, the KSE-100 stood at 127,348.72, reflecting a gain of 1,721.41 points or 1.37%. The rally was fueled by solid buying in key sectors such as banking, automotive, oil and gas exploration, and power generation. Major stocks including HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP performed strongly, leading the charge.
This positive start follows a strong end to the previous fiscal year, as Monday’s final session of FY2024-25 closed with a gain of 1,248.25 points (1%), finishing at 125,627.31—then a record high. The rise was attributed to strong fiscal year-end inflows, robust institutional participation, and renewed optimism over external financing developments, all of which lifted investor sentiment.
Optimism remains high moving into July, supported by signs of political and economic stability. The Ministry of Finance has projected June inflation to fall to 4%, further boosting confidence among market participants.
However, analysts caution that energy-related concerns could impact future trading sessions. The recent increase in petroleum prices, a new levy on furnace oil, and higher gas tariffs have sparked fears of rising electricity costs, especially as Independent Power Producers (IPPs) warn of possible rate adjustments.
Globally, Asian markets mostly posted gains amid anticipation over key legislative decisions in the U.S. Investors closely monitored progress on a massive tax and spending bill backed by President Donald Trump, though Senate debates caused delays. The proposed legislation, expected to add $3.3 trillion to U.S. debt, has somewhat dampened risk appetite worldwide.
MSCI’s index of Asia-Pacific shares (excluding Japan) advanced by 0.5%, with South Korea’s Kospi rising 1.8%. Japan’s Nikkei, however, dropped by up to 1.1% due to a strengthening yen. Meanwhile, oil prices fell for a second straight session, while gold edged slightly higher as markets awaited critical U.S. labor data set to be released later in the week.
