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PSX Surges 1,300 Points Ahead of Budget, Hits Record High
PSX soars 1,300 points as budget optimism, ADB’s $800M package, and institutional buying lift investor confidence. Market hits record high amid hopes of economic recovery.
ND
by News Desk
2025-06-04
PSX Surges 1,300 Points Ahead of Budget, Hits Record High

The Pakistan Stock Exchange (PSX) witnessed a robust rally on Wednesday, with the benchmark KSE-100 index surging by more than 1,300 points ahead of the federal budget announcement set for June 10. The bullish sentiment was driven by positive developments including the approval of an $800 million programme by the Asian Development Bank (ADB), attractive stock valuations, and a surge in institutional buying.

By 1:31 PM, the KSE-100 index had gained 923.71 points (0.77%) to reach 121,374.58, up from the previous close of 120,450.87. The index eventually closed at a record high of 121,798.86, marking an overall gain of 1,347.99 points or 1.12%.

Sana Tawfik, Head of Research at Arif Habib Limited, credited the rally to investor optimism following the announcement of ADB’s financial assistance. The ADB has approved an $800 million package aimed at enhancing fiscal sustainability and public financial management in Pakistan.

According to a statement from the Philippines-based lender, the package includes a $300 million policy-based loan and ADB’s first-ever policy-based guarantee of up to $500 million. The guarantee is expected to mobilise around $1 billion in commercial financing for Pakistan.

Tawfik also pointed out that recent corrections had made stock valuations particularly attractive, creating ripe conditions for a rebound. “There is also some institutional buying which has increased liquidity,” she added.

Yousuf M. Farooq, Director of Research at Chase Securities, commented on the broader market dynamics, saying: “The market has hit an all-time high as participants brush off any negative budget-related news flow.”

He explained that the rally reflects growing confidence in Pakistan’s economic outlook, with expectations of stable macroeconomic conditions and a gradual decline in interest rates. “We believe the market is entering the second phase of the bull run — transitioning from the accumulation phase to the public participation phase,” he said.

This phase is typically characterized by increased investor activity, rising trading volumes, expanding price-to-earning (PE) multiples, and signs of economic recovery. Farooq also noted that public confidence, media attention, and upcoming IPOs are expected to further fuel market momentum.

He emphasized that policy measures such as reduced corporate taxation, alignment with IMF reforms, and accelerated digitisation efforts will continue to bolster investor sentiment and help maintain the bullish trend.

The strong rally ahead of the budget suggests that investors are optimistic about pro-growth fiscal measures and structural reforms that could further boost corporate earnings and market performance.

 

 

 
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PSX

PakistanEconomy

Budget2025

PakistanStockExchange
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