PSX Hit All-Time High Amid Inflation Decline, Energy Policy Relief

The Pakistan Stock Exchange (PSX) maintained its record-breaking momentum on Wednesday, with the KSE-100 Index reaching a new all-time high, supported by favorable inflation data and policy easing in the energy sector.

The KSE-100 climbed to an intraday peak of 129,901.03, gaining 1,701.61 points (1.33%). It recorded a session low of 128,616.11, which was still 416.69 points (0.33%) above the previous close of 128,199.42.

“Stocks are hitting new highs amid positive CPI inflation data showing 3.2% year-on-year for June 2025 and government forecasts for strong export growth and inflation between 5–7% in FY26,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

He also noted that the government’s removal of the excise duty on industrial power tariffs, coupled with rising global crude oil prices, acted as catalysts for the bullish activity at the PSX.

Pakistan’s headline inflation dropped to 3.23% year-on-year in June 2025, driven by declines in food, utilities, and essential consumer prices, according to official figures released on Tuesday.

The average annual inflation for FY2024-25 was 4.49%, the lowest in nearly ten years, reinforcing market expectations of another interest rate cut by the State Bank of Pakistan (SBP), which has already reduced rates from a peak of 22% to 11%.

The easing inflationary pressure was mainly due to a fall in food inflation, which decreased to 2.56% in June from 3.07% in May. Prices of perishable food items remained in deflation for the sixth straight month, although the rate of deflation slowed to -10.55% from -9.2% in May.

On Tuesday, the KSE-100 surged 2,572.11 points (2.05%) to close at 128,199.42, up from 125,627.31 the previous day. The index hit an intraday high of 128,475.69 and a low of 126,113.27, marking its highest-ever close and a strong start to the new fiscal year.

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