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KARACHI: The Pakistan Stock Exchange (PSX) celebrated the start of the new fiscal year with a remarkable rally on Wednesday, driven by increasing economic optimism.
Easing inflationary pressures due to falling oil prices and higher revenues triggered aggressive buying, pushing the benchmark KSE-100 index above the 184,000 level. The recent de-escalation of tensions in the Middle East, with the US and Iran initiating technical talks at the Strait of Hormuz, has paved the way for smoother energy shipping.
Topline Securities Ltd said the bulls extended their dominant run on the PSX, with strong buying interest fuelling a broad-based rally throughout the session. The benchmark index surged to an intraday high of 3,931 points before closing at 184,050, up 3,748 points or 2.08 per cent.
The Federal Board of Revenue (FBR) exceeded the downwardly revised target of Rs12.983tr by more than Rs21 billion, reaching Rs13.010 trillion in FY26, mainly due to stronger-than-expected income tax receipts.
Furthermore, the Ministry of Finance, in its June outlook report, hoped that inflationary pressure would ease in 2026-27 following the opening of the Strait of Hormuz as peace efforts take shape.
June CPI eased to 11.07pc from 11.66pc in the previous month, reinforcing expectations of a more accommodative monetary policy stance in the months ahead.
Further boosting market confidence was the decline in international crude oil prices, with WTI hovering around $68 per barrel, alleviating concerns over Pakistan’s import bill and easing inflationary pressures. The rally was underpinned by aggressive institutional accumulation and broad-based buying, enabling the benchmark index to extend its record-setting momentum.
On the index contribution front, index heavyweights United Bank Ltd, Meezan Bank, Habib Bank, MCB Bank, and Bank Alfalah emerged as the top contributors, collectively adding 2,429 points to the benchmark index.
Market participation improved, with total traded volume rising 33.79pc to 941 million shares and traded value surging 47.1pc to Rs57 billion. K-Electric led the volume chart, with 82 million shares changing hands.
Published in Dawn, July 2nd, 2026
