On July 1, 2025, the Pakistan Stock Exchange (PSX) began the fiscal year 2025-26 with an impressive rise, as the index increased by 2,300.18 points to reach 127,927.49, marking a 1.83% gain.
The KSE-100 index opened fiscal year 2025-26 with a 1.83% gain, reaching 127,927.49 after an intra-day high of 128,149.46 and a low of 126,113.27. Trading volume reached 198.08 million shares, with a value of Rs 16.83 billion. This follows a strong close on June 30, 2025, when the index rose 1,248 points to 125,627.31. Arif Habib Limited reported that 297 of 481 traded companies saw gains, with Fauji Fertiliser Company (+1.52%), HBL (+3.51%), and Bank AL Habib (+2.7%) leading contributions.
Analysts attribute the surge to positive investor sentiment fueled by economic and political stability. The federal budget’s fiscal reforms, including anticipated cuts to industrial power tariffs and the privatisation of state-owned enterprises, bolstered confidence. Additionally, a $3.4 billion loan rollover from China, which raised foreign exchange reserves to over $14 billion, ensured compliance with IMF requirements, stabilising the rupee and enhancing market optimism.
The PSX’s record close for 2024-25, with the KSE-100 gaining 1% to 125,627, set the stage for the current rally. Last week’s momentum, driven by 71 rising shares and robust volumes, carried forward. Top performers included Pakistan Aluminium Beverage Cans and Faysal Bank, reflecting strong sector participation. The market’s resilience positions it well for continued growth in the new fiscal year, pending sustained policy support.
Read: Pakistan Stock Exchange Hits Record High at 125,627 to Close Fiscal Year 2025
The PSX’s strong start to 2025-26 signals Pakistan’s improving economic outlook, driven by fiscal reforms and external financial backing. The KSE-100’s surge impacts investors, businesses, and national growth, highlighting the importance of stability and policy clarity. As Pakistan ranks high in reducing global default risk, this rally underscores its growing financial credibility.
