The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained over 3,700 points on Wednesday, the first day of the new fiscal year.
The KSE-100 index gained 3,748.40 points (2.08 per cent) to close at 184,050.10.
The market sustained its positive momentum from Tuesday, when it staged a recovery rally, propelling KSE-100 above the 180,000 mark and helping the market close FY25-26 with a stellar performance.
Awais Ashraf, director of research at AKD Securities, noted that the inflation figures for June released today by the Pakistan Bureau of Statistics (PBS) were “below market expectations” and “reinforced the view that inflationary pressures” were continuing to subside.
Pakistan’s consumer price index rose 11.1pc year-on-year in June, easing from 11.7pc in May and coming within the government’s forecast range of 11pc-12pc, the PBS said.
“Expectations of monetary easing have strengthened investor sentiment, as inflation is projected to remain within the State Bank of Pakistan’s target range in FY27 due to a decline in oil prices following the temporary settlement between the US and Iran,” Ashraf added.
On Monday, following the exchange of military strikes between the United States and Iran over the weekend, the PSX had come under renewed selling pressure, closing 1,156.47 points down.
The outgoing FY25-26 proved to be a landmark year for the PSX, with the KSE-100 index delivering a remarkable 44pc return in rupee terms and 46pc in dollar terms, rising from 125,627 points at the end of FY25 to 180,302.
Analysts believe the KSE-100 index may advance towards its all-time high of 189,000, supported by lower oil prices and rising expectations of policy rate cuts, while inflation data, monetary policy signals and geopolitical developments remain key catalysts.
