Pakistan Stock Exchange gains over 3,700 points on first day of FY27

The Pakistan Stock Exchange (PSX) experienced a significant boost on Wednesday, marking the first day of the new fiscal year, FY27. The benchmark KSE-100 index climbed by an impressive 3,748.40 points, or 2.08 percent, to close at 184,050.10. This upward movement continued the positive momentum seen on Tuesday, when the market staged a rally that pushed the KSE-100 index above the 180,000 mark.

The outgoing fiscal year, FY25-26, proved to be a landmark period for the PSX. The KSE-100 index delivered a remarkable return of 44% in rupee terms and 46% in dollar terms, demonstrating substantial growth from its starting point of 125,627 points at the end of FY25. This strong performance contrasts with a brief dip on Monday, which saw the index fall by 1,156.47 points amid renewed selling pressure following military exchanges between the United States and Iran over the weekend.

Looking ahead, analysts are optimistic about the market's prospects. They believe the KSE-100 index could advance towards its all-time high of 189,000 points. This positive outlook is supported by several factors, including lower oil prices and increasing expectations of policy rate cuts by the State Bank of Pakistan. However, key catalysts that will continue to influence market movements include upcoming inflation data, signals from monetary policy, and evolving geopolitical developments.