KARACHI — The Pakistan Stock Exchange (PSX) kicked off the new fiscal year with an extraordinary bull run on Wednesday, as the benchmark KSE-100 index rocketed by more than 3,700 points in a single session.
The index surged 3,748.40 points, or 2.08 percent, to close at a historic high of 184,050.10. The massive single-day gain completely erased the geopolitical panic from earlier in the week.
Market analysts credited the explosive buying interest to fresh consumer price data released by the Pakistan Bureau of Statistics (PBS). June inflation clocked in at 11.1 percent year-on-year—dropping below widespread market expectations and easing down from May’s 11.7 percent.
The #PSX extended its upward trajectory as the benchmark KSE-100 Index closed at a record 184,050.10, gaining 3,748.40 points (+2.08%).
The session began on a cautious note before broad-based buying gathered pace, particularly in the final hour of trading, pushing the index…
— Adeel Afzal (@AdeelAfzal06) July 1, 2026
The cooling numbers have aggressively strengthened investor expectations for rapid interest rate cuts by the State Bank of Pakistan in the coming months.
Sentiment was further bolstered by an easing of global energy pressures. While equity markets crashed on Monday following direct US-Iran military exchanges over the weekend, a subsequent temporary diplomatic settlement between Washington and Tehran dragged international crude oil prices down, relieving Pakistan’s import concerns.
The momentum carries over from a blockbuster performance in the outgoing fiscal year (FY26), which concluded yesterday. Over the last 12 months, the KSE-100 index delivered a massive 44 percent return in rupee terms and 46 percent in dollar terms, skyrocketing from 125,627 points to cross the 180,000 threshold.
Financial market strategists project that if global oil stability holds and domestic core inflation continues its downward trajectory, the KSE-100 is highly likely to challenge its ultimate all-time high target of 189,000 points later this quarter.
