KSE-100 index crosses 144,000 as bulls dominate trading at PSX

The Pakistan Stock Exchange (PSX) saw strong bullish activity on Wednesday, with the benchmark KSE-100 Index surpassing the 144,000 mark during the early hours of trading. 

According to the PSX website, the market opened on a positive note and the benchmark index climbed to 144,144.26 level, with an increase of 1,107.1 as of 9:57 am. 

Key sectors, including oil marketing companies (OMCs), automobile assemblers, commercial banks, oil and gas exploration companies, and refineries, attracted significant buying interest. Stocks with high index weight, such as ARL, OGDC, POL, SNGPL, SSGC, MCB, MEBL, and UBL, were all trading in positive territory.

At 10:45 am, the KSE-100 was hovering at 144,153.41 points, up by 1116.25 points or 0.68% from the previous close of 143,037.16 points. 

Market observers attribute the ongoing rally to positive macroeconomic indicators, strong investor confidence, and a generally bullish market sentiment.

On the economic front, Pakistan has posted its lowest fiscal deficit in nine years, recording a 5.38% deficit for the fiscal year 2025 (FY25). This is an improvement over the government’s revised forecast of 5.6% and the IMF’s projection of 5.6%, surpassing expectations for both, according to Topline Securities.

Notably, non-tax revenues saw a 66% increase, primarily driven by a Rs2.62 trillion dividend from the State Bank of Pakistan (SBP), up from Rs0.97 trillion in FY24. This was supported by higher interest rates and an expanded balance sheet.

The FBR tax-to-GDP ratio reached a seven-year high of 11.3% in FY25, compared to 9.7% in FY24 and an average of 9.9% from FY20 to FY24. This increase includes the significant rise in PDL, which the government used to replace sales tax to avoid sharing revenue with provinces.

Pakistan also recorded a primary balance surplus of 2.4% of GDP, the highest in recent history. This surplus was achieved as revenue growth outpaced expenditures, surpassing the government’s revised projection of 2.2% and the IMF’s forecast of 2.1%.

On Tuesday, the PSX had already seen a historic rally, with the KSE-100 Index closing at a record high of 143,037.17, up by 985 points or 0.69%.

Internationally, Asian shares slipped along with Wall Street on Wednesday, after weak U.S. data highlighted the damage tariffs were having on economic activity and earnings, while the dollar struggled with the drag from lower bond yields.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2%, while Japan’s Nikkei eked out a small 0.2% gain.

Both Chinese blue chips and Hong Kong’s Hang Seng index were flat.

Nasdaq futures fell 0.3% and S&P 500 futures eased 0.1%.