KARACHI: The Pakistan Stock Exchange (PSX) surged to new heights on Wednesday, with the benchmark KSE-100 Index closing at a record 124,352.68 points, gaining 2,328.24 points or 1.91% in a single session. The rally was driven by investor optimism over the government’s decision to avoid major new taxation in the federal budget for FY 2025-26.
Bullish sentiment dominated the day, with the index hitting an intra-day high of 124,588.17. Strong buying was observed across major sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and power generation. Index-heavyweights like HUBCO, PSO, MARI, OGDC, POL, PPL, HBL, MCB, and UBL all closed in the green.
“The absence of major taxation measures and the retention of capital gains tax at 15% have boosted investor confidence,” said Samiullah Tariq, Head of Research at Pak Kuwait Investment Company.
Prime Minister Shehbaz Sharif welcomed the stock market rally, calling it a vote of confidence in the “people-friendly budget.” Finance Minister Muhammad Aurangzeb, who presented the Rs17.573 trillion budget on Tuesday, said the proposals aim to create a competitive economy with a 4.2% GDP growth target.
The government also projected inflation at 7.5% and a fiscal deficit of 3.9% of GDP, down from the previous 5.9%. A primary surplus of 2.4% is also targeted, signaling efforts to stabilize macroeconomic indicators.
Trading volumes soared, with 1.04 billion shares exchanged—up from 592.95 million a day earlier. The value of traded shares more than doubled to Rs46.71 billion. Pervez Ahmed Co led volumes with 78.29 million shares, followed by WorldCall and Sui Southern Gas.
Despite the market's rally, the Pakistani rupee depreciated slightly by Re0.26, closing at 282.47 against the US dollar.
Out of 478 companies traded, 283 gained, 157 declined, and 38 remained unchanged—reflecting widespread investor optimism following the budget announcement.
