KSE-100 Index Gains 960 Points as Investor Confidence Rises
KARACHI: The Pakistan Stock Exchange (PSX) saw a significant rally on Wednesday, with the KSE-100 index surging 960 points, as investor confidence grew on expectations of pro-growth measures and tax relief in the upcoming federal budget.
Despite some pressure on the automobile sector—linked to anticipated IMF-backed tariff changes and a revised National Tariff Policy—the broader market sentiment remained bullish. Investor optimism was bolstered by government assurances of fiscal reforms and tax concessions for the refinery sector.
Ahsan Mehanti, Managing Director at Arif Habib Corp, noted that equities closed near all-time highs, fueled by budget speculation and the positive outlook for economic reforms.
Index Nears 120,000 Mark
The benchmark KSE-100 index closed at 119,931.46, registering a gain of 960.33 points or 0.81%. According to Topline Securities, the market briefly crossed the 120,000 mark during intraday trading, peaking with a 1,135-point rise, although it couldn’t sustain that level by close.
Large-cap stocks led the rally, with the banking, oil, and energy sectors contributing nearly 480 points to the index’s gain.
The refinery sector also saw heightened activity after the government approved the clearance of Rs34 billion in outstanding dues through adjustments in petroleum prices. This move is expected to enable refineries to move forward with $6 billion worth of plant upgrades, lifting shares of National Refinery, Pakistan Refinery, and Attock Refinery.
Sector-Wise Highlights and Movers
Arif Habib Limited (AHL) noted that the market is showing strength and may soon breach the 120k level. Of the stocks traded:
- 74 advanced,
- 24 declined,
- National Bank of Pakistan (+10%), Bank AL Habib (+2.85%), and United Bank (+1.22%) were top contributors.
- In contrast, Lucky Cement (-0.53%), Habib Metropolitan Bank (-1.66%), and Standard Chartered Bank (-4.21%) pulled the index down.
Meanwhile, Ogra set new prescribed gas prices for FY26:
- Rs1,895/mmBtu for Sui Northern Gas Pipelines (up 6.57%)
- Rs1,659/mmBtu for Sui Southern Gas Company (down 5.90%)
These rates were well below the utilities’ requested hikes of Rs2,486/mmBtu and Rs4,161/mmBtu, respectively.
Market Activity and Outlook
KTrade Securities highlighted that the strong recovery came after a sluggish start to the week, with improved trading volumes and active participation in key sectors such as banking, energy, and power.
Despite positive macroeconomic signals, analysts expect investor caution to persist until the FY26 budget announcement on June 2.
- Trading volume jumped to 667.7 million shares, up from 437.9 million on Tuesday.
- Trade value stood at Rs26.6 billion.
- Out of 463 companies traded, 287 closed higher, 125 declined, and 51 remained unchanged.
K-Electric led the volume chart with 103.7 million shares traded, gaining Rs0.36 to close at Rs4.75. It was followed by Kohinoor Spinning Mills (40.3 million shares, +Rs0.36) and WorldCall Telecom (36.3 million shares, +Rs0.03).
Foreign investors sold Rs146.9 million worth of shares, according to the National Clearing Company.
