The PSX winning streak hit to five consecutive sessions on Wednesday, closing at a record 165640.34 points with a gain of 146 points or 0.09 per cent, despite intraday volatility that saw the index drop 1338 points. This occurred in Karachi at 4:35 PM on October 1, 2025, driven by institutional buying in key sectors amid cautious optimism.
KSE 100 New High Fuels Pakistan Stock Market Rally 2025
The KSE 100 index, the benchmark of the PSX, notched another milestone as it touched an intraday high of 166522 points before settling at its historic close. This marks the fifth straight record-setting day, part of a broader Pakistan stock market rally 2025 that has seen the index climb over 44 per cent year-to-date. Trading volumes rose 21.42 per cent to 1.633 billion shares, though the traded value dipped 9.26 per cent to PKR 69.5 billion.
Top performers included Mari Energies, Meezan Bank, Fatima Fertiliser, and Bank of Punjab, which together added 694 points to the index. In contrast, Engro Holdings, Hub Power, Habib Bank, Pakistan Petroleum, and Bank Al-Habib subtracted 481 points. K-Electric topped the volume chart with 299 million shares traded.
Ali Najib, deputy head of trading at Arif Habib Ltd, described the session as turbulent. “The index swung between gains and losses before eventually settling at 165640.34, marking a historic closing,” he said.
This performance aligns with data from the previous session on October 1, where the PSX highlighted strong activity in Shariah-compliant stocks, accounting for 64 per cent of total equity value traded. Exchange-traded funds emerged as the most active category, with the KSE 100 showing notable pullers and draggers in its market snapshot.
The rally reflects sustained investor interest in Pakistan’s equities, bolstered by easing monetary policies and improved foreign inflows. Year-to-date, the KSE 100 has delivered a 44.32 per cent return, outpacing many regional peers.
Volatility Challenges Persist in PSX Winning Streak
Despite the gains, the day unfolded as a classic tug-of-war between bulls and bears. The index faced heavy selling pressure mid-session, plummeting 1338 points from its peak. Topline Securities noted this as a sign of underlying tensions in the market.
Contributing to the caution was fresh inflation data. Pakistan’s consumer price index rose to 5.6 per cent year-on-year in September 2025, up from 3 per cent in August, according to the Pakistan Bureau of Statistics. The spike stemmed from flood-related disruptions in food supply chains, pushing prices higher for essentials.
Urban consumer price index increased 1.50 per cent month-on-month and 5.49 per cent year-on-year. This uptick adds uncertainty, as it could influence the State Bank’s next policy rate decision. Analysts link the PSX winning streak partly to expectations of rate cuts, but persistent inflation may temper those hopes.
Sector-wise, energy and fertiliser stocks led the charge, benefiting from global commodity trends and domestic demand recovery. Banking shares showed mixed results, with some gaining on robust earnings previews. The cement sector, however, lagged amid construction slowdowns tied to monsoon impacts.
On October 1, the PSX’s official snapshot indicated the KSE 100 opened at 166079.50 points, with a previous close of 165902.30 and a day range of 165567.25 to 166509.00. This set the stage for Wednesday’s volatile yet positive close.
Nut Graph: Boosting South Asian Economic Sentiment
This PSX winning streak matters beyond Pakistan, signalling resilience in South Asia’s largest economy by population. As neighbours like India and Bangladesh grapple with their own market fluctuations, Pakistan’s rally attracts cross-border capital, potentially stabilising regional trade and remittance flows. It underscores efforts to tame inflation and foster growth, offering a template for emerging markets amid global rate hikes.
Background: Roots of the Pakistan Stock Market Rally 2025
The current surge traces back to mid-2025, when the KSE 100 crossed 130000 points in July amid falling inflation and IMF-backed reforms. By September, it scaled 157000, propelled by fertiliser and bank stocks. The past week alone added over 1000 points, with daily records becoming routine.
Official data from the PSX shows trading volumes averaging 1.5 billion shares in recent sessions, a 20 per cent jump from August levels. Foreign investors, net buyers for three months, poured in PKR 15 billion last month alone. This contrasts with earlier bearish phases, where political instability and high rates deterred participation.
The rally coincides with broader economic indicators: GDP growth projected at 3.5 per cent for fiscal 2025, up from 2.4 per cent last year. Remittances hit USD 2.3 billion in September, supporting currency stability. Yet, challenges like energy shortages and fiscal deficits linger, testing the sustainability of the PSX winning streak.
What’s Next for the KSE 100 New High
Upcoming corporate earnings reports from blue-chip firms will shape the trajectory. Investors eye the State Bank’s October 14 policy meeting, where a 100-basis-point cut could extend the Pakistan stock market rally 2025. Global oil prices and US Fed signals also loom large.
Market participants anticipate consolidation if inflation persists above 5 per cent. However, continued institutional flows could push the KSE 100 towards 170000 by year-end. As the PSX winning streak persists, it positions Pakistan as a bright spot in South Asian markets, with potential to draw more regional attention.
Published in SouthAsianDesk, October 2nd, 2025
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