The Pakistan Stock Exchange (PSX) continued its upward momentum on Wednesday, crossing the 129,000-point mark for the first time in history. During intraday trading, the KSE-100 benchmark index surged by 1,251.46 points, reaching a record-breaking 129,450.46 points. This bullish rally was driven by investor optimism fueled by fresh equity allocations in the federal budget and signs of economic stability.
A day earlier, the market had already shown strong gains, with the benchmark index rising by 2,572.11 points to close at 128,199.43. This represents a 2.05 percent increase, supported by a buying spree that led to the trading of over 1.03 billion shares worth Rs 44 billion. Out of 479 companies that traded their shares, 233 recorded gains, 206 faced losses, and 40 remained unchanged.
Adding to the positive sentiment, Pakistan’s trade deficit decreased by nine percent month-on-month (MoM) in June 2025, falling to $2.3 billion. On a year-on-year (YoY) basis, the deficit shrank by three percent. Imports dropped by seven percent MoM and two percent YoY to $4.9 billion, while exports also declined by five percent MoM and one percent YoY to $2.5 billion.
Furthermore, inflation indicators have shown a favorable trend. The Consumer Price Index (CPI)-based headline inflation fell to 3.2 percent in June 2025, compared to 3.5 percent in May. Notably, inflation stood at 12.6 percent during the same month last year, indicating significant improvement. On a monthly basis, CPI rose slightly by 0.2 percent, compared to a 0.2 percent decrease in the previous month.
Urban inflation eased to 3.0 percent YoY in June from 3.5 percent a month earlier, while rural inflation increased slightly to 3.6 percent from 3.4 percent. Meanwhile, the Sensitive Price Indicator (SPI) showed a YoY drop of 1.9 percent, marking continued relief for consumers. Overall, these figures suggest a stable economic outlook, further boosting investor confidence in Pakistan’s equity market.