WEBDESK: The Pakistan Stock Exchange (PSX) reached a historic milestone on Monday, with its benchmark KSE-100 Index hitting an all-time high. The index closed at 121,799 points, showing a sharp increase fueled by investor confidence ahead of the federal budget for 2025-26.
This strong performance marked a major moment for the PSX, reflecting the market’s optimism over possible business-friendly reforms and economic stability in the upcoming budget announcement.
Why the PSX is rising
Investors are hopeful that the new budget will include tax relief measures, stable energy tariffs, and steps that align with IMF program goals. These expectations have lifted market sentiment across sectors.
Positive economic indicators have also helped boost the market. Petroleum product sales saw a 10% year-on-year increase in May, showing rising activity in the economy. Similarly, cement exports have gone up, signaling strength in the construction sector.
Another key factor was the approval of an $800 million loan from the Asian Development Bank (ADB) to support Pakistan’s economy and stabilize the rupee.
The market briefly touched a high of 122,611.53 points before settling at 122,423.56 points during intraday trading.
Trading volumes remained robust with 144,033,353 shares exchanged, and the total value of shares traded reached Rs 7.78 billion. The previous day’s close was recorded at 121,641.00 points.
At the end of the previous week, PSX continued its positive momentum, with the benchmark KSE-100 index reaching an all-time high of 121,798 points on June 4, before settling at 121,641, marking a weekly gain of 1,950 points (+1.63%).
Why the PSX is Rising
The rally was driven by positive developments, including successful budget talks with the IMF, the Asian Development Bank’s approval of a $800 million financing package, and the finalisation of a Rs1.275 trillion circular debt resolution deal with banks.
Macroeconomic indicators also supported sentiment, with a 10% rise in petroleum sales YoY, CPI-based inflation easing to 3.5%, and a 23% MoM reduction in the trade deficit.
Market experts predict more growth
According to analysts, the PSX could continue its upward trend, possibly crossing 130,000 points in the coming weeks – especially if the budget includes policies that support industries and attract foreign investment.
However, experts also caution that continued growth depends on how the government handles fiscal challenges, especially tax policies, debt management, and agreements with global financial institutions like the IMF.
