PSX Hits All-Time High, Crosses 130,000 Points

The Pakistan Stock Exchange (PSX) made history on Wednesday, July 2, 2025, as its main index, the KSE-100, soared past 130,000 points for the first time. This exciting milestone has grabbed attention, showing Pakistan’s stock market is stronger than ever. The rally comes from big investors buying stocks, positive economic news, and people moving money from bonds to stocks.

KSE-100 Index Sets New Records

On Wednesday, the KSE-100 Index jumped by 2,144 points, up 1.67%, closing at 130,344 points. During the day, it reached a high of 132,546 points. The bullish trend continued on Thursday, with the index hitting 131,325 points and closing at 130,686.65, up 342.62 points or 0.26%. This is the fourth day in a row of record-breaking highs for the PSX.

Big investors and positive economic updates are driving this surge. With inflation dropping and interest rates likely to fall, stocks are more attractive than bonds, which give lower returns now.

Why Is the PSX Booming?

Here’s why the PSX is on fire:

• Low Inflation Sparks Hope: Inflation in Pakistan fell to 3.2% in June 2025, the lowest in nine years. This makes stocks a better choice and raises hopes for lower interest rates.
• Shift from Bonds to Stocks: Higher taxes on bond income and changes in mutual fund taxes have pushed investors to buy stocks instead, says AKD Securities.
• Banking Stocks Shine: Major banks like United Bank Limited (UBL), MCB Bank, Bank AL Habib, Meezan Bank, Habib Bank, and National Bank led the rally, adding 1,286 points to the KSE-100 on Wednesday.
• Pharma Stocks Bounce Back: Companies like Searle Pakistan, Citi Pharma, Haleon Pakistan, and Abbott Laboratories saw strong buying, with Searle hitting its upper limit.
• Good Economic News: Pakistan’s trade deficit dropped to $2.32 billion in June 2025, a 9.4% improvement. A stable rupee and more foreign investment also help.

Ali Najib from Arif Habib Limited says low stock prices, strong company profits, and government support for markets are making the PSX a top choice for investors in the region.

Top Stocks Fueling the Rally

Banks were the stars of the show. Here’s a table of the top performers on Wednesday:

Some stocks like Pakgen Power (-4.56%), Cherat Cement (-1.57%), and Lucky Cement (-0.27%) fell, slightly slowing the index.

Trading Buzz and Market Trends

Trading was active, with 1.02 billion shares traded on Wednesday, worth Rs49.3 billion. WorldCall Telecom led with 89.9 million shares, followed by The Bank of Punjab (89.5 million shares) and Kohinoor Spinning Mills (46.3 million shares). Of 473 companies traded, 256 went up, 192 went down, and 25 stayed the same.

Foreign investors sold Rs698 million in shares, but local buyers kept the market strong. Topline Securities says investors are chasing stocks for better returns since bonds aren’t exciting anymore.

What’s Next for the PSX?

Experts are hopeful about the PSX’s future. Arif Habib Limited says the rally could keep going, with support at 128,500 points. Strong company profits and better economic news are fueling the momentum. Investors are also watching global markets, where Asian stocks rose slightly on Thursday due to U.S. trade deal hopes.

The PSX’s climb past 130,000 points shows Pakistan’s economy is improving and investors are confident. New fiscal policies in the FY26 budget are also helping.

Why This Matters to You

The PSX hitting 130,000 points is great news for investors. With banks and pharma stocks doing well and the economy looking up, the PSX is a hot market. Whether you’re new to investing or experienced, now’s a good time to check out the PSX. Just keep an eye on company profits and global trends to make smart choices.

This historic rally proves Pakistan’s stock market is strong and full of opportunities.