PSX All-Time High: Budget Boosts Investor Confidence
- The Pakistan Stock Exchange (PSX) experienced a surge, reaching a historic high of 124,000 points Wednesday.
- The KSE-100 index broke the 124,000 barrier around 11 a.m., experiencing a slight dip before climbing to 124,588.17 points by 3:30 p.m., a significant 2,563.73 point increase from...
- Awais Ashraf, research director at AKD Securities, stated that the budget was well-received because it lacked new taxes or levies on the stock market, easing prior concerns.
The pakistan Stock Exchange (PSX) surged to an all-time high of 124,000 points following the federal budget declaration, driven by investor optimism. This positive reaction stems from perceived “neutral-to-positive” budget aspects, especially tax relief measures and incentives, boosting market confidence and driving the KSE-100 index upwards. Analysts like Awais Ashraf highlight the absence of new taxes as a major relief, while others note the favorable Capital Gains Tax (CGT) framework encouraging investment. Explore how the government’s fiscal management, inflationary pressures, and adherence to IMF conditions will impact the market’s future. Stay informed with News directory 3 for the latest developments. Discover what’s next for the PSX.
Pakistan Stock Exchange Soars After Budget Announcement
Updated June 11, 2025
The Pakistan Stock Exchange (PSX) experienced a surge, reaching a historic high of 124,000 points Wednesday. This surge followed the unveiling of the proposed federal budget, which investors viewed favorably due to its “neutral-to-positive” stance.
The KSE-100 index broke the 124,000 barrier around 11 a.m., experiencing a slight dip before climbing to 124,588.17 points by 3:30 p.m., a significant 2,563.73 point increase from the previous day. The index closed at 124,352.68 points, marking a gain of 2,328.24 points, or 1.91 percent.
Awais Ashraf, research director at AKD Securities, stated that the budget was well-received because it lacked new taxes or levies on the stock market, easing prior concerns. He added that the budget is seen as neutral to positive for listed sectors, with tax collection and fiscal targets considered achievable.
Faran Rizvi,country head of sales at JS Global Capital,noted a cautiously optimistic market reaction,anticipating short-term gains due to tax relief on capital gains. Rizvi said the Capital Gains Tax (CGT) framework proved more favorable than expected, encouraging mutual funds and institutional investors to shift capital toward equities, possibly increasing market liquidity.
Yousuf M. Farooq, research director at Chase Securities, believes the market is entering a mass participation phase, characterized by rising volumes and increased public involvement. He added that valuations remain reasonable and are expected to trend higher.
the budget is viewed as neutral-to-positive for the listed sectors, with tax collection and fiscal deficit/primary surplus targets seen as non-events, as we beleive they remain within the authority’s ability to meet for FY26.
Despite this optimism, Rizvi cautioned that sustained market performance hinges on the government’s ability to manage public finances, address inflationary pressures, and maintain stable monetary policies in line with IMF conditions.Broader concerns persist regarding the sustainability of fiscal measures and the government’s ability to meet ambitious revenue collection targets while maintaining investor confidence.
What’s next
looking ahead, market analysts suggest that while the PSX may experience near-term gains, long-term stability depends on the government’s fiscal management and adherence to IMF guidelines. The focus will be on whether the government can meet its revenue targets and maintain investor confidence in the coming fiscal year.