The Pakistan Stock Exchange (PSX) achieved a historic milestone as the KSE-100 Index surged past the 130,000-point mark on Wednesday, July 2, 2025, driven by robust investor confidence and positive economic indicators. The benchmark index gained over 1,100 points in the opening minutes of trading, reflecting strong market momentum fueled by macroeconomic stability, a strengthening rupee, and expectations of monetary easing in the coming weeks.
This record-breaking rally follows a strong start to the fiscal year 2025-26, with the KSE-100 Index closing at an all-time high of 128,199.43 points on Tuesday, up 2,572.11 points or 2.05%. Key sectors, including commercial banks, oil and gas exploration, and power generation, led the surge, supported by clarity on the FY26 budget and a favorable geopolitical outlook. Posts on X highlighted the market’s bullish sentiment, with users noting the index’s potential to climb toward 150,000 points, driven by improved credit ratings and declining interest rates.
Analysts attribute the PSX’s performance to easing inflation, which rose by 3.4% year-on-year in June, alongside government projections for higher exports and moderate inflation of 5-7% in FY26. The abolition of duties on industrial power tariffs and rising global oil prices further bolstered investor optimism, particularly in energy and manufacturing sectors. Companies like Fauji Fertiliser, UBL, and MCB Bank were among the top contributors to the index’s gains.
Published in SouthAsianDesk, July 2nd, 2025
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