PSX Hits Record High, Crosses 133,000 for the First Time

In a landmark achievement, the Pakistan Stock Exchange (PSX) surged past the 133,000-point mark—a record. This surge reflects growing investor confidence, improved macroeconomic fundamentals, and policy support following the federal budget.

• Record high: KSE‑100 index closed at 133,370.14 points, up 1,421.08 points (+1.08%)

• Intraday peak: Reached a high of 133,862.01 points

• Sector participation: Gains were widely spread—strong buying in automobiles, banking, energy exploration, OMCs, and refineries

Equity tax incentives in Budget 2025–26

Favourable tax on dividends and capital gains made equities more attractive than fixed-income investments

Macro-economic improvements

SBP foreign reserves rose to around US$14.5 billion, signaling stability

Inflation continued its downward trend, supporting expectations of monetary easing

Geopolitical calm

Reduced regional tension, including Pakistan‑India and Iran‑Israel, boosted investor sentiment

• Week-over-week gain: KSE‑100 rose 6.1% last week, closing at 131,949.06

• July 7 surge: Increased by 1,421 points (1.08%) to hit the record close

• FY2025 performance: Market ended the previous year with a remarkable 60.15% return, outperforming major asset classes

• Shankar Talreja, Topline Securities:

  “Stocks generating over nine percent dividend yield… match fixed-income rates, and capital gain is cherry on top.”

• Awais Ashraf, AKD Securities:
  Notes that the favourable taxation regime, lower inflation, and structural reforms are key drivers

• Yousuf M. Farooq, Chase Securities:

  “The market is firmly in Phase 2 of the bull run… rising retail participation, higher volumes, broad‑based gains.”

• Investor confidence: Marks a shift from low-interest fixed-income towards equities

• Policy validation: Signals support for structural reforms and IMF-backed economic measures

• Liquidity flow: High trading turnover and rising participation suggest a sustainably broad-based rally

• Future targets: Analysts predict the index could reach 160,000 by mid-2026, while others forecast around 165,000 by year-end

• Think long-term: As advised by Yousuf Farooq, avoid reacting to short-term volatility

• Diversify portfolio: Focus on dividends and earnings strength across key sectors

• Monitor macro data: Keep an eye on inflation trends, reserves, and budget developments

• Stay informed: Equities might outperform fixed-income if tax incentives hold and economic growth continues

The PSX’s historic climb past 133,000 points marks more than just a market milestone—it showcases renewed investor optimism, macroeconomic stability, and policy effectiveness. With momentum strong, equities offer a compelling alternative to fixed-income investments. While challenges remain, the market’s upward trajectory suggests a positive outlook for Pakistan’s financial landscape into FY2026 and beyond.