The Pakistan Stock Exchange (PSX) witnessed a powerful buying rally on Wednesday, driven by optimism surrounding successful talks with the International Monetary Fund (IMF) over the upcoming federal budget.
This positive sentiment helped the KSE-100 Index soar to an all-time high, marking a historic moment for the market.
Throughout the trading session, bullish momentum kept the market upbeat, pushing the benchmark index to an intra-day high of 121,882.47 points. By the end of the day, the KSE-100 Index settled at 121,798.86, gaining 1,347.99 points or 1.12% — a fresh record close that reflects growing investor confidence.
“Valuations have become attractive, which is driving the current buying momentum,” said Sana Tawfik, Head of Research at Arif Habib Limited (AHL).
This latest surge followed Tuesday’s record-breaking session, where the index jumped 1,573.07 points, or 1.32%, to close at 120,451 — crossing the 120,000-point milestone for the first time in PSX history. Analysts attribute this back-to-back rally to budget optimism, promising IMF negotiations, and the Asian Development Bank’s (ADB) approval of an $800 million loan for Pakistan.
The strong performance of the KSE-100 Index aligns with positive trends in broader Asian markets. On Wednesday, Asian stocks edged higher while the US dollar hovered near a six-week low amid expectations of increased US duties on steel and aluminum.
Meanwhile, South Korea’s market surged after liberal candidate Lee Jae-myung’s election win sparked hopes of economic stimulus and policy stability. The benchmark KOSP rose over 2%, hitting its highest level since August 2024. Elsewhere, Japan’s Nikkei climbed 0.8% and Taiwan’s market advanced 1.6%, following overnight gains in US stocks powered by tech giant Nvidia.
In the US, fresh data showed an increase in job openings during April, but rising layoffs suggest a slowing labor market, partly due to ongoing trade tensions. All eyes are now on a possible call between President Donald Trump and Chinese President Xi Jinping, as global markets remain sensitive to any developments between the world’s two largest economies.
Back home, investors remain hopeful that the federal budget 2025 will carry market-friendly measures and solidify Pakistan’s economic outlook — further fueling the current rally. The KSE-100 Index, now comfortably above the 120,000 mark, continues to reflect growing confidence in Pakistan’s financial future.
