KSE-100 Index ends lower at 124,093.12 after intra-day surge
The Pakistan Stock Exchange (PSX) saw heightened volatility on Thursday, briefly breaching the 126,000 mark for the first time before ending the session in the red.
The benchmark KSE-100 index climbed to an all-time intra-day high of 126,025.99 points during early trading, marking a 1,673.31-point (1.35%) gain. However, the index could not sustain the momentum and closed at 124,093.12—down 259.56 points or 0.21% from the previous day’s close of 124,352.68.
During the session, the index fluctuated between a high of 126,055.32 and a low of 124,807.09.
Trading activity remained robust, with volumes reaching 113.6 million shares and a total transaction value of Rs11.38 billion.
Thursday’s market pullback came a day after a strong rally on Wednesday, when the KSE-100 surged by 2,328 points (1.91%) to close at 124,352.68—a record at the time—driven by investor enthusiasm over the recently announced federal budget.
The FY26 budget, which left equity taxation unchanged while increasing withholding tax on bank deposits, was largely viewed as market-friendly. Investors responded positively, interpreting the measures as supportive of both capital markets and broader economic stability.
According to analysts, the budget’s forecasted 3.9% fiscal deficit and Rs1 trillion allocation for the federal Public Sector Development Programme (PSDP) further contributed to the upbeat sentiment.
Arif Habib Corporation Managing Director Ahsan Mehanti noted that the rally was driven by across-the-board investor interest, especially in key sectors like cement, banking, oil and gas, and fertilisers. Stocks such as Lucky Cement, Fauji Fertiliser, and Pakistan Petroleum posted notable gains.
Investor confidence was also bolstered by the absence of new taxes and the continuation of subsidies for vital sectors.
JS Global analyst Mubashir Anis Naviwala remarked that the market had broken all resistance levels, pushing past the 124,000 milestone in a wave of budget-fueled optimism. An intra-day high of 124,588 was hit on Wednesday before the index settled at 124,353.
Trading volumes soared that day, with more than 1 billion shares changing hands and a total value of Rs46.7 billion. A majority of listed stocks (283) ended higher.
However, the National Clearing Company reported that foreign investors sold shares worth Rs1.1 billion, partially offsetting the domestic buying momentum.
