PSX extended its record-breaking run for a second consecutive day, with the KSE-100 Index climbing to 129,680.91 during intra-day trading.
The KSE-100 Index climbed to an intraday peak of 129,680.91, gaining 1,481.49 points, or 1.16%, from the previous close of 128,199.42. It touched a session low of 128,616.11 earlier in the day.
On Tuesday, the benchmark KSE-100 Index surged by 2,300.18 points, or 1.83%, to close at 127,927.49, setting a fresh all-time high. The index touched an intraday peak of 128,149.46, with the session’s low recorded at 126,113.27.
This sharp gain followed Monday’s close of 125,627.31 marking three consecutive sessions of upward momentum.
The rally follows official data showing headline inflation eased to 3.23% year-on-year in June, driven by falling food, energy and utility prices. The June reading marks the lowest annual inflation rate in almost a decade, reinforcing market expectations of further monetary easing by the central bank. The State Bank of Pakistan (SBP) has already reduced its benchmark interest rate from a historic high of 22% to 11%, in response to moderating inflationary pressures.
Read: Inflation falls sharply, undercuts tight policy
Average inflation for FY2024-25 stood at 4.49%, providing the strongest disinflationary signal since 2016. Much of the slowdown is attributed to a decline in food inflation, which fell to 2.56% in June, down from 3.07% in May.
Prices of perishable food items remained in deflationary territory for the sixth consecutive month, though the pace of deflation eased slightly to -10.55% in June from -9.2% in May.
The government’s decision to abolish the electricity duty (ED) on industrial power tariffs also contributed to improved investor sentiment, particularly in manufacturing and export-driven sectors.
Additionally, a global uptick in crude oil prices spurred buying in energy and exploration stocks, further fuelling bullish momentum at the Pakistan Stock Exchange (PSX).