Pakistan Stock Exchange Gains 3,748 Points as Inflation Eases

On Wednesday, the Pakistan Stock Exchange displayed a vigorous rally as its benchmark KSE‑100 index surged more than 2%, propelled by strong buying in heavyweight sectors. The index closed at 184,050.10, up 3,748.40 points (2.08%). It reached an intraday high of 184,234 after turning around from a low of 180,566.

Investors were particularly drawn to shares of commercial banks, oil‑and‑gas exploration firms, oil marketing companies, cement manufacturers, auto assemblers, and power generators. The rally reflected growing confidence in the country’s economic trajectory, alongside expectations of continued macroeconomic stability, easing inflation, and the potential for further monetary easing.

Recent data showed the Consumer Price Index eased to 11.1% year‑on‑year in June from 11.7% in May, while average inflation for FY26 was 7.06% compared with 4.5% in FY25 – a rise largely attributable to higher energy and transportation costs.

Other factors supporting the rally include expectations of stronger corporate earnings, improving external‑sector metrics, and continued engagement with international financial institutions.

According to KTrade Securities, Wednesday marked the first trading day of the new financial year (FY27), which remained bullish. The KSE‑100 surged 3,748 points (+2.08%), with trading activity robust – 472 million shares changed hands within the index.

The banking sector led the gains, with heavyweights such as UBL, Meezan Bank, HBL, MCB Bank, and Bank AL Habib pushing the index higher. Other sectors contributed modestly to the day’s advance.

Looking ahead, the market is expected to receive support from subdued oil prices following the U.S.–Iran agreement, although renewed geopolitical uncertainty may continue to pose a risk. Investors are also likely to turn their attention toward the upcoming corporate earnings season, KTrade added.

Arif Habib Limited (AHL) observed that the KSE‑100 registered an aggressive upward momentum, gaining 2.08% to close above 184k. On the index, 63 shares rose while 37 fell, with UBL (+7.87%), Meezan Bank (+7.08%), and MCB (+5.18%) contributing the most to the day’s gains. PSX (-3.72%), Fatima Fertiliser (-1.76%), and Fauji Fertiliser (-0.17%) were the largest index drags.

In corporate news, Lucky Cement (+0.61%) increased its production capacity to 5.35 million tons at its Karachi plant, bringing the company’s total annual capacity to 15.6 million tons.

“The aggressive gains we have been anticipating since the breach of 175k are now here and we continue to expect an additional upside to target the January 2026 highs,” commented AHL.

Overall trading volumes rose to 941.5 million shares, compared with 703.7 million on Tuesday, and the value of traded shares reached Rs57 billion.

In the ready market, shares of 490 companies were traded: 297 closed higher, 171 dropped, and 22 remained unchanged. K‑Electric was the volume leader with trading in 82.7 million shares, resulting in a slight loss to close at Rs8.33. Foreign investors bought shares worth Rs494.6 million, according to the National Clearing Company.

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