KARACHI:
Pakistan Stock Exchange (PSX) continued its upward journey on Tuesday, crossing 128,000 points for the first time in history. The bull-run was triggered by the allocation of fresh funds for the equity market, economic and political stability as well as optimism surrounding fiscal reforms announced in the federal budget.
Investor sentiment was further buoyed by encouraging signals such as a sharp decline in June’s Consumer Price Index (CPI) to 3.4% year-on-year and the government’s upbeat projections for exports and inflation. Additionally, the abolition of duty on industrial power tariffs and a rally in global crude oil prices aided the momentum, which took the KSE-100 index to a new high at 128,199, up 2,572 points, or 2.05%. According to Ahsan Mehanti of Arif Habib Corp, stocks closed at a new all-time high amid upbeat data of CPI-based inflation, which rose 3.4% year-on-year in June, and the government’s projections for higher exports and modest 5-7% inflation in FY26.
He added that the abolition of duty on industrial power tariffs and surging global oil prices drove the bullish close at the PSX. In its review, Topline Securities stated that the KSE-100 index kicked off the new fiscal year with a bang, soaring to intra-day high of 2,848 points before settling at 128,199, up an impressive 2,572 points.
Fauji Fertiliser Company (FFC) was the standout performer, contributing 565 points following the release of a report a day earlier, which buoyed investor interest, it said. Banking stocks were in the limelight as investors actively reshuffled their portfolios. Heavyweights like UBL, Meezan Bank, MCB Bank, HBL and Bank AL Habib added 1,221 points, reflecting strong institutional interest. On the flip side, cement stocks faced headwinds as profit-taking kicked in amid weaker local dispatches, added Topline.
Arif Habib Limited (AHL) commented that the stock market extended gains up to 128,000 points, with the KSE-100 index going up by 2.05%.
Some 60 shares rose and 39 fell, where FFC (+5.04%), UBL (+5.03%) and MCB Bank (+8.91%) contributed the most to index gains. On the flip side, Lucky Cement (-1.54%), DG Khan Cement (-2.48%) and Tariq Glass Industries (-4.36%) were the biggest drags, it said.
AHL noted that the CPI for June 2025 registered an increase of 3.2%, compared to the hike of 3.46% in May. Inflation slowed last month, despite a sharp rise in fuel costs following the Israel-Iran military conflict. The government raised fuel prices by Rs13.75 in June, the highest increase in 11 months. “Support for the index rises to 126,500 points, with the broader target of 130,000 now in sight,” commented AHL.
JS Global analyst Muhammad Hasan Ather said that the KSE-100 kicked off FY26 on a bullish note, where the benchmark index rose 2% to close at 128,199. Investor optimism was driven by fiscal reforms outlined in the federal budget and renewed confidence from political and economic stability, he said.
“With robust trading volumes and resilient sentiment, the outlook remains positive, having the potential for further upside, as economic indicators stabilise and reforms gain traction,” he remarked.
Overall trading volumes decreased to 1.03 billion shares compared with Monday’s tally of 1.1 billion. The value of shares traded was Rs44 billion. Shares of 479 companies were traded. Of these, 233 stocks closed higher, 206 fell and 40 remained unchanged.
Kohinoor Spinning Mills was the volume leader with trading in 85 million shares, falling Rs0.11 to close at Rs6.39. It was followed by The Bank of Punjab with 73.8 million shares, gaining Rs0.57 to close at Rs10.92 and Sui Southern Gas Company with 69.2 million shares, rising Rs1.94 to close at Rs44.73. Foreign investors sold shares worth Rs914.4 million, the National Clearing Company reported.