KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Wednesday, with the benchmark KSE-100 index surging by 923.71 points, or 0.77%, to reach 121,374.58 in intraday trading. This upward momentum comes just days before the federal budget announcement scheduled for June 10.
Analysts attributed the positive market sentiment to the Asian Development Bank’s (ADB) approval of a new $800 million financial package aimed at bolstering Pakistan’s fiscal management and resource mobilisation. The programme includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million, expected to attract $1 billion in commercial bank financing.
Sana Tawfik, head of research at Arif Habib Limited, noted that market confidence was buoyed by improved valuations after a recent correction, institutional buying, and enhanced liquidity.
Chase Securities’ Yousuf M. Farooq remarked that the PSX had reached an all-time high, indicating the market's transition from the accumulation phase to broader public participation. He cited expectations of economic stability, falling interest rates, and growing investor confidence as key drivers.
Farooq added that reduced corporate taxation, IMF compliance, and increased digitisation efforts would likely sustain the current bullish momentum.
