PSX Soars Past 133,000 Mark Amid Bullish Momentum, Macroeconomic Optimism

KARACHI — The equity market extended its bullish streak into the new week, with the Pakistan Stock Exchange (PSX) surging past the 133,000 level for the first time ever in intraday trade. The rally was driven by optimism around trade negotiations, macroeconomic stability, and a strong corporate earnings outlook.

The benchmark KSE-100 Index climbed to an all-time intraday high of 133,862.01, marking a gain of 1,912.95 points or 1.45%. The session’s low stood at 132,467.12, reflecting a rise of 518.06 points or 0.39%.

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

Investor sentiment remains upbeat, supported by falling inflation, improving foreign exchange reserves, and renewed capital inflows. Analysts expect the momentum to continue, as higher taxes on alternative assets and lower yields are prompting a shift from fixed income to equities.

PSX closed FY25 as the best-performing market in the region, delivering a 60% total return. That strength has carried into FY26, propelling the KSE-100 Index into uncharted territory. Average daily traded volumes (ADTV) surged by 31% week-on-week, highlighting growing investor participation.

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

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

Inflation data further reinforced bullish sentiment. The Consumer Price Index (CPI) for June slowed to 3.2% year-on-year, bringing FY25’s average inflation to 4.5%, down sharply from 23.4% in FY24. This decline opens the door for potential interest rate cuts, strengthening the investment case for equities.

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