Buying rally continues at PSX, KSE-100 settles above 184,000

Strong buying momentum continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 closing above 184,000 on Wednesday.

The market initially opened under pressure, briefly dipping below the previous close of 180,301.70, before swiftly rebounding as investor sentiment improved.

After trading in a relatively narrow range through the mid-day session, buying accelerated sharply in the final hour, lifting the index above 184,000 and keeping it near its intra-day peak into the close.

At close, the benchmark index settled at 184,050.10, up by 3,748.40 points or 2.08%.

“Investor sentiment remained firmly upbeat, supported by encouraging macroeconomic developments. June 2026 CPI eased to 11.07% from 11.66% in the previous month, reinforcing expectations of a more accommodative monetary policy stance in the months ahead,” brokerage house Topline Securities said.

“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 UBL, MEBL, HBL, MCB, and BAHL emerged as the top contributors, collectively adding 2,429 points to the benchmark index, Topline said.

Pakistan’s headline inflation clocked in at 11.1% on a year-on-year (YoY) basis in June 2026, as shown by Pakistan Bureau of Statistics (PBS) data on Wednesday.

The KSE-100 Index surged 44% in FY2025-26, capping the fiscal year on a strong note as improved macroeconomic stability under the IMF-supported programme boosted investor confidence and fueled a sustained stock market rally.

The index closed the year’s last trading session at 180,301, up by 44% from 125,627 at the end of FY25.

Internationally, Asian share markets started the new quarter in a cautious mood on Wednesday as talks between the United States and Iran hit new hurdles, while investors were ​on alert for possible Japanese intervention as the yen plumbed fresh 40-year lows.

Tehran said on Tuesday it would not meet with top U.S. envoys who had flown to the region, with the two sides still far apart on a framework to fully open the Strait of Hormuz.

Bond markets were also under pressure after U.S. Treasury yields spiked overnight as futures narrowed the odds on rate hikes from the Federal Reserve ahead of crucial jobs figures on Thursday.

All eyes will thus be on Fed Chair Kevin Warsh when he appears at a European Central Bank conference later in the ​session, for any guidance on the need for a tightening.

Unfortunately for traders, Warsh has long been against the Fed providing forward guidance and may keep his policy cards ​close to his chest.

Futures imply a 33% probability the Fed could hike rates at its next meeting later this month, while a September ⁠move is priced around 70%.

Equity investors are betting the coming earnings season will be bright enough to offset the rate risk and continue to pile into favoured tech trades.

Japan’s Nikkei climbed ​another 1.0%, having surged 37% last quarter. The rush for everything tech helped boost sentiment among big manufacturers to heights not seen since 2018, according to a closely watched survey out on Wednesday.

A separate ​survey showed manufacturing had boasted its best quarter since 2014 as new orders surged.

South Korea’s main index slipped 1.4%, having risen an eye-watering 68% in the second quarter on booming AI-related demand for semiconductors. MSCI’s broadest index of Asia-Pacific shares outside Japan held steady.

Volume on the all-share index increased to 941.48 million from 703.69 million recorded in the previous close.

The value of shares rose to Rs57.09 billion from Rs38.81 billion in the previous session.

K-Electric Ltd was the volume leader with 82.67 million shares, followed by B.O.Punjab with 77.11 million shares, and P.T.C.L with 28.75 million shares.

Shares of 490 companies were traded on Wednesday, of which 297 registered an increase, 171 recorded a fall, and 22 remained unchanged.