The capital market continued its upward trajectory on Wednesday, maintaining bullish momentum following a historic close the previous day, as investors responded positively to the latest inflation data and policy relief in the energy sector.

“Stocks trading at new all-time high amid upbeat data on CPI inflation at 3.2% YoY for June ’25 and government projections for surging exports and inflation at 5–7% in FY26,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.

"Government abolishment of ED (duty) on industrial power tariff and surging global crude oil prices played catalyst role in bullish activity at PSX,” he added.

The Pakistan Stock Exchange’s (PSX) benchmark KSE‑100 Index climbed to an intraday high of 129,901.03, gaining 1,701.61 points, or 1.33%, and touched a session low of 128,616.11, up 416.69 points, or 0.33%, from the previous close of 128,199.42.

Pakistan’s headline inflation eased to 3.23% year-on-year in June 2025, driven by declines in food, utilities, and essential consumer prices, according to official figures released Tuesday.

The annual average inflation for FY2024-25 stood at 4.49%, marking the lowest reading in nearly a decade and supporting market expectations for another interest rate cut by the State Bank of Pakistan (SBP), which has already slashed rates from a peak of 22% to 11%.

The slowdown in cost pressures was led by a fall in food inflation, which declined to 2.56% in June, down from 3.07% in May. Perishable food prices remained in deflation for the sixth consecutive month, though the pace eased to -10.55% from -9.2% in May.

On Tuesday, the KSE-100 surged by 2,572.11 points, or 2.05%, to close at 128,199.42, up from 125,627.31 a day earlier. The index touched an intraday high of 128,475.69 and a low of 126,113.27, marking its highest-ever close and capping a strong start to the new fiscal year.