KSE-100 surges past 128,000 level as bulls drive strong rally into new fiscal year

The Pakistan Stock Exchange (PSX) kicked off fiscal year 2025-26 on a bullish note, with the benchmark KSE-100 Index surged past the 128,000 level during intra day trade on Tuesday. 

According to the PSX website, the KSE-100 climbed to 128,142.69 points, up by 2515.38 points from the previous close of 125,627.31 points. At 1:15 pm, the index was hovering at 127,727.18, showing an increase of 2099.87 points or 1.67%.

Key sectors such as oil and gas exploration companies, automobile assemblers, commercial banks, and power generation saw notable buying activity. Index-heavy stocks like HUBCO, MARI, PRL, POL, MCB, MEBL, and NBP traded in the green.

Despite setbacks such as the FBR falling short of its annual revenue target and the government’s recent increase in fuel prices, investor confidence remained unshaken. These challenges did not dampen market sentiment, and investors continued their buying spree.

The PSX ended the last trading session of FY24-25 on a strong note, driven by fiscal year-end flows, active institutional participation, and positive developments in external financing. By the end of the session, the KSE-100 Index had surged by 1,248.25 points, or 1%, closing at a record 125,627.31 points.

According to a report by Arif Habib Limited (AHL), the PSX stood out as one of the top-performing stock markets globally in FY25, with the KSE-100 Index delivering a remarkable 55.5% return in USD terms and 58.6% in PKR terms, ranking third worldwide. This remarkable rally was driven by aggressive monetary easing, improved market liquidity, and the unlocking of fundamental value across key sectors.

The KSE-100’s performance was surpassed only by Ghana’s GGSECI Index, which posted a 140.7% return, and Slovenia’s SBITOP Index, which gained 56.7%. 

On international front, Asian shares crept higher and the dollar languished near multi-year lows on Tuesday as markets awaited a vote over U.S. President Donald Trump’s landmark tax and spending legislation.

Global share markets rallied to an intraday record on the previous day on trade optimism, but a marathon debate in the Senate over a bill estimated to add $3.3 trillion to the United States’ debt pile weighed on sentiment.

Japan’s Nikkei gauge of shares sank as much as 1.3% as the yen climbed against the dollar, a negative for exporters’ earnings. Oil fell for a second consecutive session and gold advanced.

A vote on Trump’s sweeping tax-cut and spending bill had been expected during the Asian trading day on Tuesday, but debate raged on over a long series of amendments by Republicans and the minority Democrats.

Trump wants the bill passed before the July 4 Independence Day holiday. As global trade negotiators scramble to get deals done before Trump’s tariff deadlines, investors are also anticipating key U.S. labour market data on Thursday.

China’s blue-chip CSI300 Index edged up 0.1%, while the Shanghai Composite Index gained 0.2%.

The dollar dropped 0.2% to 143.79 yen. The greenback was little changed against the European single currency and earlier touched $1.1808, the weakest since September 2021.

U.S. crude dipped 0.5% to $64.80 a barrel, weighed by expectations of an OPEC+ output hike in August. Spot gold rose 0.6% to $3,322.62 per ounce.

Pan-region Euro Stoxx 50 futures edged up almost 0.1% while German DAX futures rose 0.2%.