The Pakistan Stock Exchange (PSX) made history by closing above the 120,000-point mark for the first time, with the KSE-100 index ending Tuesday’s session at 120,450.87. The index recorded a gain of 1,573.07 points, or 1.32%, after reaching an intraday high of 120,693.83 and a low of 119,129.51.
Trading activity remained strong with a volume of 315.2 million shares, amounting to Rs20.9 billion in value. This surge in market sentiment comes ahead of Pakistan’s highly anticipated federal budget, expected later this month.
The upbeat momentum followed a turbulent start to the week. On Monday, the benchmark index saw sharp intraday fluctuations—rising by as much as 1,018 points before closing 813 points lower at 118,877.80. The downturn was largely driven by investor concerns over proposed tax hikes on banking, savings instruments, and petroleum products, along with rising inflation.
May’s Consumer Price Index (CPI) registered a 3.5% year-on-year increase, mainly due to food price hikes, adding to market jitters.
Market experts, including Ahsan Mehanti of Arif Habib Corp, attributed recent volatility to fiscal uncertainty, geopolitical developments, and currency fluctuations ahead of the FY26 budget. Topline Securities also pointed to selling pressure over possible increases in taxes on passive income.
Despite the challenges, select stocks like Pakgen Power, National Foods, Meezan Bank, and National Bank of Pakistan helped prop up the index. Conversely, declines in stocks such as Systems Limited, Engro Holdings, and Pakistan Petroleum limited overall gains.
Market breadth remained mixed, with 29 stocks advancing, 71 declining, and a total of 464 companies traded. Dewan Cement led trading volumes, while foreign investors recorded net selling of Rs1.97 billion worth of shares.
Analysts remain cautiously optimistic. While short-term pressure may persist, many believe the ongoing corrections could offer buying opportunities in sectors like cement, automobiles, and fertilizers.
