Pakistan Stock Exchange (PSX) extended its remarkable ascent on Wednesday as the benchmark KSE-100 index smashed past the 130,000 milestone for the first time in history, gaining 2,145 points day-on-day.
The bourse saw robust buying by big investors while low returns on bonds pushed more market players to build their investment portfolios. The upbeat investor sentiment provided the rally a strong support, driving stock prices higher across key sectors such as banking and communications. Subsequently, the KSE-100 index closed the day higher by 1.67% at an unprecedented level of 130,344.03.
"Increase in tax rates on income from debt securities, along with the shift in mutual fund taxation to a proportionate investment holding structure, prompted a shift in flows from fixed income to equities," AKD Securities' Director Research Muhammad Awais Ashraf told The Express Tribune.
Additionally, with inflation falling to a nine-year low in FY25, the likelihood of further interest rate cuts strengthened the outlook for equities and boosted investor confidence, he added.
KTrade Securities wrote in its market review that the banking sector continued to deliver strong performance, propelling the index to new record levels over the past two sessions. Wednesday's rally was primarily fuelled by robust gains in stocks of UBL, MCB Bank, Bank AL Habib, Meezan Bank, HBL and National Bank of Pakistan.
Arif Habib Limited (AHL) reported that the index hit the intermediate-term target of 130,000 on Wednesday. Some 61 shares advanced while 39 declined as UBL (+5.51%), MCB Bank (+5.66%) and Bank AL Habib (+4.65%) contributed the most to index gains. Conversely, Pakgen Power (-4.56%), Cherat Cement (-1.57%) and Lucky Cement (-0.27%) dragged the index down, it said.
Among economic news, Pakistan's trade deficit stood at $2.32 billion in June 2025, showing a 9.4% improvement compared to May. Meanwhile, Mari Energies and Ghani Chemical Industries signed a term sheet to explore the feasibility of processing vent and exhaust gases from the Sachal Gas Processing Complex, located in Daharki, Sindh.
Following a strong 12% rise from the June lows, the index reached the key target level of 130,000, AHL said, anticipating that the momentum would continue, with support rising to 127,000.
Topline Securities observed in its review that bulls went on a rampage as the KSE-100 index shattered records, storming past the 130,000 milestone. The index hit intra-day high of 2,346 points before closing at 130,344, up by a solid 2,145 points.
Fuelled by aggressive institutional buying and a wave of fresh fiscal year optimism, the rally showed no signs of cooling. With fixed-income yields offering little excitement, investors were rotating into equities in search of alpha, giving the market a powerful tailwind, it said.
Banks led the charge where blue-chip names including UBL, MCB Bank, Bank AL Habib, Meezan Bank, Habib Bank and National Bank of Pakistan stole the limelight and collectively pumped 1,286 points into the index.
In an interesting move, the pharma sector made a comeback. Searle Pakistan hit its upper lock, while Citi Pharma, Haleon Pakistan and Abbott Laboratories saw healthy investor appetite, added Topline.
Overall trading volumes slipped to 1.026 billion shares compared with Tuesday's tally of 1.033 billion. The value of shares traded was Rs49.3 billion. Shares of 473 companies were traded. Of these, 256 stocks closed higher, 192 fell and 25 remained unchanged.
WorldCall Telecom was the volume leader with trading in 89.9 million shares, gaining Rs0.08 to close at Rs1.61. It was followed by The Bank of Punjab with 89.5 million shares, rising Rs0.62 to close at Rs11.54 and Kohinoor Spinning Mills with 46.3 million shares, losing Rs0.27 to close at Rs6.12. Foreign investors sold shares worth Rs698 million, the National Clearing Company reported.
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