In a historic rally, the KSE-100 index of the Pakistan Stock Exchange (PSX) closed above 120,000 points for the first time. The index ended Tuesday’s session at 120,450.87, gaining 1,573.07 points or 1.32%. This bullish momentum comes just days ahead of Pakistan’s federal budget announcement for FY2025–26.
Intra-Day Highs and Market Activity
The index hit an intra-day high of 120,693.83 and a low of 119,129.51. Trading volume reached over 315 million shares with a total value of nearly Rs21 billion. The sharp upward move reflects renewed investor confidence despite recent volatility.
Earlier Volatility and Market Concerns
On Monday, the market showed sharp fluctuations. The KSE-100 rose by over 1,000 points during the day but later dropped to close at 118,878, down 813 points. Investors expressed concern over potential tax hikes on passive income, petroleum levies, and inflationary pressures.
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May’s Consumer Price Index (CPI) recorded a 3.5% year-on-year rise, driven by food inflation. This raised fears of reduced purchasing power and tighter monetary conditions.
Key Contributors and Decliners
According to analysts from Arif Habib Corp and Topline Securities, uncertainty around the upcoming budget and rupee depreciation initially drove the market lower. However, companies like Pakgen Power, National Foods, Meezan Bank, and National Bank of Pakistan helped stabilize the index.
On the other hand, stocks such as Systems Limited, Engro Holdings, and Pakistan Petroleum dragged the index.
Mixed Market Sentiment
Out of 464 companies traded, 29 advanced, 71 declined, and the rest remained unchanged. Dewan Cement led in volume, while foreign investors offloaded shares worth Rs1.97 billion, reflecting cautious sentiment.
Sector Outlook Remains Optimistic
Despite mixed trends, analysts expect select sectors like cement, automobiles, and fertilizers to benefit from upcoming fiscal policies. While short-term volatility remains likely, the recent surge signals underlying optimism in the market.
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