KARACHI — The Pakistan Stock Exchange (PSX) closed at a historic high on Friday, with the benchmark KSE-100 Index settling at 124,379.41 points — the highest closing level in its history. The index gained 2,332 points during the week, driven by renewed investor confidence following the passage of the Finance Bill 2025.
On Friday alone, the index surged by 2,333 points or 1.91% compared to the previous close of 122,046.46. Market sentiment remained upbeat throughout the session, buoyed by political stability signals and clarity on fiscal direction after the government secured parliamentary approval for its budget proposals.
Buying was observed across key sectors including commercial banks, exploration and production, cement, and automobiles. Index-heavyweights such as OGDC, MCB, HBL, PSO, and Mari Petroleum traded firmly in the green, contributing significantly to the day’s rally.
The surge follows Thursday’s volatile session, where the index lost over 700 points due to profit-taking and nervousness ahead of the Finance Bill vote. However, with the budget now approved — including a Rs17.57 trillion outlay for FY26 — investors appeared to recalibrate expectations around corporate earnings and macroeconomic outlook.
During intraday trading, the KSE-100 Index reached a high of 125,247.4 points, surpassing the closing mark. Total traded volume for the benchmark index was robust, indicating broad-based participation across both institutional and retail investors.
Market participants attributed the gains to increased foreign interest, expectations of monetary easing in the months ahead, and continued engagement with the IMF under a likely new programme.
With today’s rally, the KSE-100 has now gained nearly 78% since July 2023, making it one of the best-performing frontier markets over the past 12 months. Analysts say further upside is possible if macroeconomic stability holds and reforms under the budget translate into earnings growth.
The broader All-Share Index also posted gains, reflecting improved sentiment beyond blue-chip counters. Total market volume crossed 750 million shares, while traded value exceeded Rs30 billion, closing at 77,679.81 points (1,376 points higher) marking one of the most active sessions of the fiscal year so far.
Market watchers will now look to upcoming monetary policy developments and progress on external financing to determine whether the rally sustains into July.
