KARACHI – The Pakistan Stock Exchange (PSX) kicked off the new fiscal year 2025–26 with a historic surge, as the benchmark KSE-100 Index soared by over 2,500 points in a single session, crossing multiple psychological milestones and setting a new all-time high.
On Tuesday, the KSE-100 Index rallied by 2,515 points, closing at a record 128,142, breaking past the 126,000 and 127,000-point levels for the first time in Pakistan’s history. The sharp rise eclipsed the previous intraday high of 126,718 points recorded in June.
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The extraordinary performance reflects strong investor confidence, underpinned by signs of political and economic stability. The market opened on a positive note and gained momentum throughout the day, with robust activity seen in key sectors such as banking, oil and gas, power, and automotive manufacturing.
Investor sentiment has remained upbeat entering July, bolstered by the Finance Ministry’s forecast projecting inflation to fall to 4% in June, further fueling expectations of a stable economic outlook and policy continuity.
Global markets also influenced sentiment, with most Asian indices trading higher amid developments in the United States. Investors worldwide were monitoring the progress of a sweeping tax and spending bill spearheaded by U.S. President Donald Trump. The bill, which is expected to increase U.S. debt by an estimated $3.3 trillion, faced delays in the Senate, dampening global risk appetite.
In the broader region, MSCI’s Asia-Pacific index (excluding Japan) gained 0.5%, supported by a 1.8% jump in South Korea’s Kospi, while Japan’s Nikkei slipped 1.1% as the yen strengthened. Meanwhile, oil prices fell for a second straight session, and gold edged higher ahead of key U.S. labor market data expected later this week.
The PSX rally highlights renewed investor trust in Pakistan’s financial markets, with optimism expected to continue as macroeconomic indicators improve and global uncertainty persists.
