KARACHI: Shrugging off the prevailing geopolitical uncertainty, the Pakistan Stock Exchange (PSX) on Tuesday staged a recovery rally, propelling the benchmark KSE-100 index above the 180,000 mark as investors rushed for bargain hunting, helping the market close 2025-26 with a stellar performance.
Topline Securities Ltd said the index largely traded in the positive zone during the session and closed at 180,302, up 1,886.91 or 1.06 per cent. The positivity was attributed to a recovery after the previous session’s decline, as investors factored in lower oil prices.
The top positive contribution to the index came from Fauji Fertiliser, Hub Power, United Bank, Engro Holdings, Mari Energies and Lucky Cement, which cumulatively contributed 1,324 points.
However, investor participation weakened as trading volume dipped 19.5pc to 703m shares, while the traded value declined 11.68pc to Rs38.81bn on a day-on-day basis.
Benchmark index delivers a 44pc annual return in outgoing fiscal year
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX turned in a strong performance in the final session of FY26.
The outgoing FY26 proved to be a landmark year for the PSX, with the KSE-100 index delivering a remarkable 44pc return in rupee terms and 46pc in dollar terms, rising from 125,627 at the end of FY25 to 180,302.
The rally was driven by ample liquidity, attractive valuations across key sectors and resilient investor sentiment despite intermittent geopolitical volatility.
Trading activity also reached record levels during FY26, with average daily volume climbing to an all-time high of 913m shares, while average daily traded value rose to $152m — the highest since FY08.
Topline Securities Ltd said the PSX had recorded total gains of 335pc in rupee terms and 347pc in dollar terms over the past three years, supported by macroeconomic stability under the IMF programme.
Market performance during FY26 can be divided into two halves. During 1HFY26, the market posted a return of 39pc, while the return in 2HFY26 was 4pc.
The strong performance in 1HFY26 was driven by improving economic indicators despite the July-August 2025 floods. Meanwhile, 2HFY26 was eventful, with the index touching a high of 189,167 on Jan 23 before falling to a low of 146,480 on Mar 9, representing a variance of 29pc.
Analysts believe the KSE-100 index may advance towards its all-time high of 189,000, supported by lower oil prices and rising expectations of policy rate cuts, while inflation data, SBP policy signals and geopolitical developments remain key catalysts.
Published in Dawn, July 1st, 2026
