The Pakistan Stock Exchange (PSX) reached new heights on Monday, with the benchmark KSE-100 index crossing the 133,000 points mark during intraday trading. The index gained 1,771.48 points, or 1.34 percent, to stand at 133,720.54 points at 11:20 am. Analysts attribute the market’s optimism to a favorable taxation regime for equities following the passage of the federal budget.
Awais Ashraf, director of research at AKD Securities, noted that improving macroeconomic indicators and lower inflation have channeled flows towards equities. Yousuf M. Farooq, research director at Chase Securities, believes the market is in Phase 2 of the bull run, marked by rising retail participation, higher trading volumes, and broad-based gains across sectors.
He advised retail investors to focus on long-term investing and stay consistent with their risk appetite. The upbeat sentiment has been bolstered by stabilizing macroeconomic indicators. Inflation eased to 3.2 percent in June from 3.5 percent in May, while the trade deficit narrowed to $2.3 billion for June, down 9 percent month-on-month and 3 percent year-on-year.
Bull run bolsters PSX gains
The PSX’s strong performance builds on last week’s positive opening to the new fiscal year. The index hit a then-record high of 131,949.06 points, ranking as the best-performing regional bourse with a 60% annual return in the previous fiscal year (FY25).
Easing inflation, lower electricity tariffs, and renewed interest from both local and foreign investors supported the continued upward trajectory. The KSE-100 Index surged from 125,627.31 to 131,949.06 during the week, posting a 6.1% gain. At the close of trading, the KSE-100 settled at a new record high of 133,370.14, an increase of 1,421.08 points or 1.08%.
Key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and refineries, saw significant buying activity. Internationally, markets were mixed on Monday amid confusion as US officials flagged a delay on tariffs but failed to provide much detail on the change. Oil prices slid as OPEC+ opened the supply spigots more than expected.
The uncertainty surrounding US trade policy caused a cautious initial market reaction, with S&P 500 futures and Nasdaq futures easing 0.3%, EUROSTOXX 50 futures easing 0.1%, and FTSE futures falling 0.2%.
