The Pakistan Stock Exchange (PSX) reached new heights on Monday as the benchmark KSE-100 index surged past the 133,000 mark during intraday trading. The index gained 1,771.48 points (1.34 percent) to stand at 133,720.54 points at 11:21 am, up from the previous close of 131,949.06 points. The index hit an intraday high of 133,862.01 points before closing at 133,370.14 points, which was 1,421.08 points (1.08 percent) higher than the previous day’s close.
The new fiscal year started on a positive note last week, with the KSE-100 index extending its record-setting rally. Awais Ashraf, director of research at AKD Securities, said, “A favorable taxation regime for equities and the increasing likelihood of equities outperforming other asset classes, amid improving macroeconomic indicators and lower inflation, have channeled flows towards equities.” He also noted the continuation of monetary easing, fiscal discipline, a strong external account, and a focus on structural reforms that will keep equities in the spotlight. Yousuf M.
Psx hits new intraday highs
Farooq, research director at Chase Securities, stated, “We believe the market is firmly in Phase 2 of the bull run, marked by rising retail participation, higher trading volumes, and broad-based gains across sectors.” He mentioned that the Finance Act 2025-26, which was passed last week with minimal surprises, along with geopolitical calm and potential agreements with the United States, have all contributed to improving investor confidence. Farooq advised retail investors to focus on long-term investing, stay consistent with their risk appetite, and avoid overreacting to short-term fluctuations.
He added, “While pockets of speculation have emerged — typical of a bull market — overall valuations remain reasonable.” He also cautioned investors to temper their return expectations, as “forward returns are likely to normalize compared to the outsized gains seen over the past two years.”
The positive sentiment has been supported by stabilizing macroeconomic indicators. Inflation eased to 3.2 percent in June from 3.5 percent in May. The trade deficit narrowed to $2.3 billion for June, down 9 percent month-on-month and 3 percent year-on-year.
The full-year trade deficit for FY25 stood at $26.3 billion, up 9 percent from FY24.
