KARACHI, May 24 — The Pakistan Stock Exchange (PSX) recovered much of its early losses by the end of trading on Friday, as cautious optimism emerged after a volatile session dominated by budget-related jitters.
After sliding over 400 points in early trade, the benchmark KSE-100 Index closed at 119,102.67, down just 50.37 points or 0.04%. Earlier in the day, the index had fallen as low as 118,742.59 amid sustained selling pressure driven by investor uncertainty over fiscal measures expected in the upcoming federal budget.
The intraday recovery was supported by selective buying in key blue-chip stocks, though sentiment remained broadly cautious. Market participants are still pricing in the possibility of stringent tax measures and subsidy cuts under the upcoming IMF-guided fiscal roadmap for FY2025-26.
On Thursday, the index had posted a sharper loss of 778 points, reflecting nervousness over potential hikes in capital gains tax, removal of sector-specific tax exemptions, and broader revenue-raising moves as part of the IMF’s Extended Fund Facility (EFF).
Despite a recent boost in foreign exchange reserves and the release of a $1.023 billion IMF tranche, traders remained risk-averse, awaiting greater clarity on tax reforms and government spending priorities.
A partial recovery shows that bargain-hunters are active, but the broader market remains in wait-and-watch mode. Until the budget is announced and actual numbers are on the table, more sideways movement and cautious participation can be expected.
