On July 7, 2025, the Pakistan Stock Exchange (PSX) continued its bullish run, with the KSE-100 Index gaining 1,187.99 points, or 0.9%, to reach a record 133,137.05 during intra-day trading.
The KSE-100 Index, Pakistan’s benchmark stock index, rose to an intra-day high of 133,156.63 and a low of 132,467.12, with 41 million shares traded, valued at ₨3.39 billion. This follows a historic week ending July 4, when the index hit 131,949.06, up 7,570 points or 6.1% week-on-week, driven by 198.08 million shares traded worth ₨16.83 billion. The PSX’s 60% FY25 return, the highest among its regional peers, fuels optimism.
Analysts attribute the recent market rally to a combination of easing inflation, which stands at 11.8% according to the State Bank of Pakistan (SBP), lower electricity tariffs, and an influx of foreign investments. Notably, China’s $3.4 billion financing rollover has increased the reserves to $14 billion, helping to meet the International Monetary Fund (IMF) targets. Strong institutional buying and fiscal reforms, announced in the FY26 budget in June 2025, have further bolstered market confidence. However, risks remain, including tariff threats from Trump and ongoing regional tensions, particularly related to the India-Pakistan conflict, which temper the overall optimism.
Read: Pakistan Stock Exchange KSE-100 Climbs to 131,176 in July 2025 Rally
Despite the surge, the PSX faced a 13% drop following the April 22 Pahalgam attack, with the KSE-100 falling to 102,674, according to Moneycontrol. The market’s recovery, supported by a sovereign credit rating upgrade and declining global oil prices, reflects resilience, per Bloomberg.
The KSE-100, which represents 85% of the PSX market capitalisation and comprises 100 top companies, remains a key indicator, according to the PSX. Yet, critics note potential overvaluation risks, with the Buffett Indicator projecting 17.7% annual returns.
