PSX Opening Bell: Upbeat and Unstoppable

July 02, 2025 (MLN): The benchmark KSE-100 Index kicked off Wednesday’s trading session on a positive note, opening at 129,452.06 with a gain of 1,252.64 points or 0.98%.

The index remained in the green during early trading hours, reaching an intraday high of 129,549.24 (+1,349.82) points.

The total volume recorded for the KSE-100 Index during this period stood at 55.54 million shares.

The PSX’s strong performance is being driven by growing investor confidence, fueled by the government’s stable economic policies, signs of recovery, and a supportive outlook for FY2025–26.

Contributing to this optimism, CPI-based inflation dropped to 3.2% in June 2025—down from 3.5% in May and 12.6% a year earlier—signaling improved price stability.

Additionally, Pakistan’s trade deficit narrowed by 9.4% month-on-month to $2.32 billion in June, reflecting improved external sector dynamics despite a dip in exports.

The rally is being supported by greater budget clarity and easing interest rates, which are encouraging increased participation from domestic investors.

Additionally, improved geopolitical conditions and a stronger macroeconomic environment are further boosting market sentiment.

With the commencement of FY26, the KSE-100 Index experienced a strong buying spree, driven by fresh fund allocations to equities amid growing confidence in Pakistan’s economic and political stability, Ali Najib, Deputy Head of Trading at Arif Habib Limited told Mettis Global.

The positive momentum was further fueled by optimism surrounding fiscal reforms announced in the federal budget, which signaled a commitment to structural improvements and macroeconomic discipline, he added.

Investors continue to pour funds into the Pakistan Stock Exchange (PSX) due to improving economic indicators, declining default risk, a stable rupee, and renewed foreign interest, he noted.

He further mentioned that attractive valuations, robust corporate earnings, and the government’s pro-market stance further position PSX as a compelling investment destination in the region.

Prime Minister Shehbaz Sharif expressed gratitude to the business community and investors as the KSE-100 Index hit a record high on the first day of the new fiscal year.

He called it a positive sign of growing confidence in the economy and government policies.

The prime minister credited the previous year’s economic recovery to sound government strategies and expressed optimism that the new fiscal year would mark further progress.

He reaffirmed the government’s commitment to fostering a business-friendly environment and supporting investors.

At the start of Wednesday’s trading session, out of the 100 index companies, 74 were trading in the green, 19 in the red, 2 remained unchanged, while 5 were yet to be traded.

Top early gainers included SEARL (+5.21%), JDWS (+4.05%), BOP (+3.94%), PGLC (+3.55%), and EFUG (+3.18%).

Meanwhile, among the early laggards were BNWM (-4.87%), SRVI (-2.99%), KTML (-2.68%), PSEL (-1.98%), and YOUW (-1.94%).

In terms of index-point contributions, companies that propped up the index were UBL (+237.03pts), MEBL (+128.16pts), FFC (+107.27pts), HBL (+73.91pts), and MARI (+71.13pts).

Meanwhile, companies that dragged the index lower were SRVI (-25.22pts), CHCC (-15.49pts), PSEL (-13.90pts), NATF (-7.92pts), and GHGL (-6.25pts).

Sector-wise, KSE-100 Index was supported by Commercial Banks (+681.89pts), Fertilizer (+155.16pts), Oil & Gas Exploration Companies (+103.77pts), Pharmaceuticals (+82.55pts), and Inv. Banks / Inv. Cos. / Securities Cos. (+48.57pts).

While the index was let down by Leather & Tanneries (-25.22pts), Miscellaneous (-5.18pts), Engineering (-3.34pts), Chemical (-1.65pts), and Real Estate Investment Trust (-0.92pts). 

In the broader market, the All-Share Index started at 80,582.09 with a net gain of 794.47 points or 1.00%.

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