KARACHI: The Pakistan Stock Exchange (PSX) commenced the new fiscal year on a bullish note, as the KSE-100 index posted a robust 6.1 per cent gain during the outgoing week, closing at a record high of 131,949.06 points. The rally was underpinned by strong institutional buying, a reallocation of funds from fixed-income instruments, and strengthening macroeconomic fundamentals.

Topline Securities Ltd attributed the surge to shifting liquidity dynamics following the implementation of the Finance Act 2025-26, which raised withholding tax on returns from savings and fixed deposits to 20pc, while keeping equity investment tax at 15pc. This encouraged a shift towards equities amid falling yields.

The benchmark index added 7,570 points over the week, rising from the previous close of 125,627.31. Average daily trading volumes jumped 31.4pc to 967 million shares, while average traded value rose 33pc to Rs41.5bn. In dollar terms, average daily turnover reached $145.7m, up 31.9pc week-on-week.

The upbeat sentiment was supported by stabilising macroeconomic indicators. Inflation eased to 3.2pc in June from 3.5pc in May. The trade deficit narrowed to $2.3bn for June........

© Dawn Business