PSX KSE-100 Soars to Record 168,489

The Pakistan Stock Exchange (PSX) achieved a historic milestone on October 2, 2025, with its benchmark KSE-100 Index closing at 168,489.62 points, a gain of 2,849.29 points or 1.72% from the previous close of 165,640.33. The index touched an intraday high of 168,619.32, up 2,978.99 points (1.8%), and a low of 165,567.22, down 73.11 points (-0.04%).

Analysts attribute the rally to robust mutual fund liquidity and heightened economic optimism, spurred by improved US-Pakistan relations. Equities are gaining traction as a preferred asset class, with limited alternatives amid rising treasury bill yields and inflation concerns.

Federal Minister for Finance and Revenue Muhammad Aurangzeb addressed fiscal challenges on October 1, ruling out a mini-budget despite a Rs200 billion shortfall in the Federal Board of Revenue’s (FBR) first-quarter FY26 collections. He expressed confidence in ongoing IMF review talks and noted that resolving tax-related court cases could boost revenue.

In the latest T-bill auction, the government raised Rs 696 billion, falling short of its target of Rs 750 billion. Yields rose across all tenors: the one-month cut-off yield climbed 41 basis points to 11.1502%, three- and six-month notes increased by about 20 basis points to 11.0499%, and the 12-month yield rose 19 basis points to 11.19%.

Market Snapshot – October 2, 2025

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Here’s what’s making waves:

ETFs (Exchange Traded Funds): Most Active in Today’s Market

Market Indices – At a Glance:

* KSE-100: Pullers & Draggers
* KMI-30: Pullers & Draggers
* pic.twitter.com/YRwCU73EsE

— PSX (@pakstockexgltd) October 2, 2025

Inflation in September 2025 accelerated to 5.6%, surpassing the government’s 4.5% forecast and up from 3.0% in August. The July–September average was 4.22%, down from 9.19% a year earlier, with analysts citing flood-related disruptions to the food supply as a key driver.

Market Performance and Trends

The KSE-100’s momentum follows a modest gain on October 1, when it rose 146.75 points (0.09%) to 165,640.34, with a session high of 166,522.61 and a low of 164,155.32. The sustained upward trend reflects investor confidence in Pakistan’s economic outlook, bolstered by its strong foreign relations and robust domestic liquidity.

The PSX’s performance aligns with broader market trends, where equities are increasingly favoured over fixed-income assets due to rising yields and inflationary pressures. However, analysts caution that ongoing inflation and fiscal challenges could pose risks to sustained growth.

The KSE-100’s record highs signal strong market sentiment, but investors should remain vigilant. Monitoring fiscal policies, IMF negotiations, and inflation trends will be critical to navigating potential volatility.