The Pakistan Stock Exchange (PSX) extended its bullish run on Wednesday, with the benchmark KSE-100 Index surging to an intraday high of 121,639.04, up 1,188.17 points (0.99%). The index maintained strong momentum, with the session’s low at 120,896.13, still reflecting a 0.37% gain.
Analysts attributed the rally to positive investor sentiment driven by multiple factors, including:
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Progress in IMF talks following Prime Minister Shehbaz Sharif’s announcement of successful budget negotiations.
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Relief for the agriculture sector as Pakistan’s economic team convinced the IMF to drop a proposed hike in fertiliser taxes.
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Strong performance in cement and fertiliser stocks, fueled by better-than-expected offtake numbers.
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Technical triggers as the market hit fresh all-time highs, attracting further buying.
“Payment of circular debt, tax cut rumors, and strong sectoral performance have fueled this rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. “Breaking new highs has also triggered technical buying.”
Economic Boost from ADB
Adding to the optimism, the Asian Development Bank (ADB) approved an $800 million package to support Pakistan’s fiscal reforms, including a $300 million loan and a $500 million guarantee to enhance tax policies and digital governance.
The KSE-100 had already closed at a record high of 120,450.87 on Tuesday, gaining 1,573.07 points (1.32%). With improving macroeconomic indicators and foreign inflows, the market’s upward trend appears well-supported.