PSX soars to record high amid cooling inflation

The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Wednesday, with the benchmark KSE-100 Index surpassing the 130,000-point milestone for the first time in history. The surge was fueled by encouraging inflation figures and supportive government measures in the energy sector.

During the session, the KSE-100 Index reached an intraday high of 130,175.17, rising by 1,975.75 points or 1.54%.

The index also recorded a session low of 128,616.11—still up by 416.69 points or 0.33%—from the previous close of 128,199.42.

“Stocks are hitting new record highs, supported by positive CPI inflation data of 3.2% year-on-year for June 2025, along with optimistic government forecasts for rising exports and a projected inflation range of 5–7% for FY26,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

“Government abolishment of ED (duty) on industrial power tariff and surging global crude oil prices played catalyst role in bullish activity at PSX,” he added.

Pakistan’s headline inflation eased to 3.23% year-on-year in June 2025, driven by decline in food, utilities, and essential consumer prices, according to official figures released on Tuesday.

The annual average inflation for FY2024-25 stood at 4.49%, marking the lowest reading in nearly a decade and supporting market expectations for another interest rate cut by the State Bank of Pakistan (SBP), which has already slashed rates from a peak of 22% to 11%.

The slowdown in cost pressures was led by a fall in food inflation, which declined to 2.56% in June, down from 3.07% in May. Perishable food prices remained in deflation for the sixth consecutive month, though the pace eased to -10.55% from -9.2% in May.

On Tuesday, the KSE-100 surged by 2,572.11 points, or 2.05%, to close at 128,199.42, up from 125,627.31 a day earlier. The index touched an intraday high of 128,475.69 and a low of 126,113.27, marking its highest-ever close and capping a strong start to the new fiscal year.