Pakistan’s stock market kicked off the new fiscal year 2025–26 with a major rally, as the KSE-100 index surged past the psychological barrier of 128,000 points. The market soared over 2,500 points on Tuesday, reflecting strong investor confidence and optimism about the country’s economic direction.
According to the Pakistan Stock Exchange (PSX), the benchmark index reached a record high of 128,149 points by 11:55 AM, gaining 2,522 points in early trade. This followed Monday’s gain of 1,248 points, where the index closed at 125,627 points. Just last week, the index had settled at 124,379 points, showing a consistent upward trend.
Analysts believe several factors contributed to the bullish momentum. Yusuf M. Farooq, Director of Research at Chase Securities, pointed to easing regional tensions, expectations of interest rate cuts, and improving economic stability as key drivers. He added that investors are now pricing in strong upcoming corporate earnings and adjusting the price-to-earnings ratios accordingly.
Similarly, Owais Ashraf from AKD Securities noted that higher taxes on fixed income in the latest budget are pushing investors towards the stock market, especially dividend-paying stocks. He said declining inflation, fiscal discipline, external account stability, and ongoing structural reforms support the view that interest rates will continue to ease.
Ashraf predicted that sectors benefiting from falling interest rates and reforms—such as energy—will likely remain in the spotlight. He emphasized that this trend signals the market has entered a second phase of growth marked by broader investor participation and widespread momentum across sectors.
Meanwhile, Prime Minister Shehbaz Sharif expressed satisfaction over the PSX’s performance, calling it a “positive sign” at the start of the new fiscal year. He stated that the market’s record-breaking performance reflects growing investor confidence in the government’s policies and marks a significant step in Pakistan’s economic recovery journey.