Monitoring Desk
The Pakistan Stock Exchange (PSX) scaled a fresh peak on Thursday as investor optimism ahead of the federal budget continued to drive the market upward, with the benchmark KSE-100 index reaching 120,617.78 points in early trading—up by 686.33 points.
Broad-based buying was witnessed across key sectors, including automobile assemblers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and technology. Major index-heavy stocks such as HUBCO, MARI, POL, PSO, MCB, MEBL, and NBP traded firmly in the green.
This surge followed a strong performance on Wednesday, when the KSE-100 index jumped 960 points to close at 119,931.5, fueled by investor expectations of industry-friendly measures in the upcoming budget.
Market Rebounds from Early Week Volatility
The rally marks a sharp turnaround from earlier in the week. On Tuesday, the market saw a volatile session, starting on a positive note but later losing momentum. The KSE-100 dipped to 119,106 after shedding 500 points during the session, eventually closing lower at 118,971 with a 718-point decline. Analysts attributed the drop to cautious sentiment among investors awaiting clarity on fiscal policy.
On Monday, however, the PSX showed early signs of recovery. The KSE-100 index gained 600 points in early trade, touching 120,285 as the market rebounded from recent geopolitical tensions.
Ceasefire and Economic Indicators Boost Sentiment
The overall sentiment has improved significantly in recent days, following a ceasefire that helped ease geopolitical uncertainty. Additionally, emerging positive economic indicators and hopes of a business-friendly budget have further strengthened investor confidence.
Market analysts believe the upward momentum could continue in the short term, especially if the upcoming federal budget delivers on expectations of relief for the industrial and corporate sectors.
