ISLAMABAD: The Pakistan Stock Exchange (PSX) continued its record-breaking run on Wednesday, with the benchmark KSE-100 index closing above the 121,000 mark for the first time in history, reflecting growing investor confidence ahead of the federal budget.
The index settled at 121,798.86 points, registering a gain of 1,347.99 points or 1.12% from the previous close of 120,450.87.
During the session, it touched an intraday high of 121,882.47 and a low of 120,896.13. Total trading volume stood at over 292 million shares, with a transaction value of Rs24.3 billion.
The rally followed a strong performance in the previous session, when the index gained 1,573.07 points, or 1.32%, to close above the 120,000 milestone for the first time.
Despite a sharp dip of 813 points on Monday over concerns regarding possible tax hikes and inflationary pressures, the market has rebounded swiftly.
Market experts attribute the current surge to multiple positive triggers.
“Payment of the circular debt coupled with rumours of reduction in various taxes and encouraging offtake numbers from the cement and fertiliser sectors have led to a broad-based rally,” Ahfaz Mustafa, CEO of Ismail Iqbal Securities as quoted by Geo News.
“Also, breaking new highs has triggered an upside on a technical basis,” he added.
The investor mood was further boosted by Prime Minister Shehbaz Sharif’s remarks on successful negotiations with the International Monetary Fund (IMF) regarding the upcoming federal budget.
Speaking in Peshawar on Tuesday, the Prime Minister said the agreement marked the beginning of a new era of economic development and that the government’s focus would now shift from stabilisation to sustainable growth, backed by institutional reforms.
On Tuesday, the Asian Development Bank (ADB) approved an $800 million financing package for Pakistan to support its fiscal consolidation efforts.
The package includes a $300 million policy-based loan and a $500 million policy-based guarantee aimed at mobilising commercial co-financing.
According to ADB, the funds will support reforms in tax policy, public expenditure management, and digital governance under its Improved Resource Mobilisation and Utilisation Reform Programme (Subprogram-II).
The stock market’s performance comes as the government prepares to present the federal budget, with hopes of policy continuity and investor-friendly measures driving much of the momentum.
