The Pakistan Stock Exchange (PSX) soared to record highs on Wednesday following the announcement of the federal budget for FY2025- 26, as investors responded positively to the government’s economic roadmap. The benchmark KSE-100 Index surged over 1,600 points in early trade, surpassing the 123,000 mark for the first time in history.
By 9:40 am, the KSE-100 Index stood at 123,463.86, marking a gain of 1,439.42 points or 1.18%. The index had opened at 123,415.60, peaked at 123,723.20, and recorded an intraday low of 123,290.25. The total volume in early trading reached 20.8 million shares.
Market optimism was driven by the budget’s lack of negative surprises, particularly the decision to retain the capital gains tax at 15%, which reassured equity investors. The Rs17.573 trillion budget targets 4.2% GDP growth, 7.5% inflation, a 3.9% fiscal deficit, and a 2.4% primary surplus for the coming fiscal year.
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The rally was widespread, with strong buying in commercial banks, oil and gas exploration, cement, fertilizer, and power generation. Top contributors to the index included HUBCO, PSO, OGDC, MARI, PPL, POL, HBL, MCB, MEBL, and UBL.
Leading gainers of the day were PKGP (+10.00%), MUGHAL (+7.84%), MEHT (+7.05%), HMB (+3.22%), and GADT (+2.99%). Major decliners included ATLH (-7.60%), ATRL (-3.37%), CNERGY (-2.86%), FCEPL (-2.60%), and INDU (-1.62%).
Index point leaders were FFC (+146.48), PKGP (+117.13), MEBL (+95.09), LUCK (+91.32), and PPL (+82.43). On the downside, ATLH (-35.87), ATRL (-34.67), INDU (-14.67), CNERGY (-10.90), and FCEPL (-7.20) weighed on the index.
Sector-wise, commercial banks contributed 361.21 points, oil and gas exploration 216.72, fertilizer 213.03, cement 204.14, and power generation and distribution 144.02 points. Minor losses came from automobile assemblers (-49.53), refineries (-45.57), chemicals (-2.18), food & personal care products (-1.85), and auto parts & accessories (-0.64).
Out of 100 index-listed companies, 74 advanced, 11 declined, three remained unchanged, and 12 were untraded.
The bullish PSX performance reflects growing confidence in the government’s economic direction, even as global markets showed caution amid ongoing US-China trade developments and anticipation of US inflation data. Investors remain hopeful that Pakistan’s new fiscal strategy will stimulate growth, exports, and competitiveness.
