PSX kicks off FY27 with positive momentum, gaining 3,700 points

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index sustained its positive momentum and gained over 3,700 points on Wednesday, the first day of the new fiscal year. The KSE-100 index gained 3,748.40 points (2.08 per cent) to close at 184,050.10. The benchmark index traded in green the entire session, gradually witnessing gains from an intraday low of 180,565.83 at 9:35am. The market had staged a recovery rally on Tuesday, propelling KSE-100 above the 180,000 mark and helping the market close FY25-26 with a stellar performance. Awais Ashraf, director of research at AKD Securities, and Topline Securities Ltd linked today’s investor confidence to the inflation figures for June. Pakistan’s consumer price index (CPI) rose 11.1pc year-on-year in June, easing from 11.7pc in May and coming within the government’s forecast range of 11pc-12pc, the Pakistan Bureau of Statistics said on Wednesday. On a month-on-month basis, CPI fell 0.3pc in June, compared with a 0.5pc increase in May and a 0.2pc rise in June last year. Ashraf noted that the inflation figures were “below market expectations” and “reinforced the view that inflationary pressures” were continuing to subside. “Expectations of monetary easing have strengthened investor sentiment, as inflation is projected to remain within the State Bank of Pakistan’s target range in FY27 due to a decline in oil prices following the temporary settlement between the US and Iran,” he added. Topline Securities Ltd also noted that the upbeat investor sentiment was supported by “encouraging macroeconomic developments”, highlighting that the easing CPI reinforced “expectations of a more accommodative monetary policy stance in the months ahead”. “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,” Topline observed. It added that the rally was “underpinned by aggressive instit