KARACHI: Trading at the Pakistan Stock Exchange (PSX) witnessed a sharp surge of nearly 2,000 points before a suspension for Friday prayers, as investors eagerly awaited the federal budget for fiscal year 2026-27, presented later in the day by Finance Minister Senator Muhammad Aurangzeb.
Market Performance
The benchmark KSE-100 Index climbed significantly to 171,659.29 points, reflecting robust positive sentiment. The market recorded a substantial gain of 1,955.69 points, representing a 1.15% increase from the previous close of 169,703.60 points. During the session, the index touched an intraday high of 171,692.23 points and a low of 170,946.54 points.
Trading volume stood at 120,208,518 shares, with total market turnover reaching Rs. 9.73 billion. The upward momentum was clearly visible on the intraday chart, indicating sustained buying pressure throughout the morning session.
Pre-Budget Optimism
The positive trend followed a strong close on Thursday, when the KSE-100 Index gained approximately 276 points to settle near 169,704 points. This sustained optimism came ahead of major fiscal announcements expected in the federal budget.
Yesterday's release of the Pakistan Economic Survey 2025-26 provided an encouraging backdrop. The survey reported real GDP growth of 3.7% for FY26, missing the 4.2% target but showing improvement over previous years. Per capita income rose to $1,901, while inflation moderated significantly.
Sectoral Performance
Sectoral growth was broad-based, with agriculture expanding 2.89%, industry 3.51%, and services 4.09%. Foreign exchange reserves strengthened, and the current account posted a modest surplus.
Analysts noted that the market has been riding on expectations of a neutral to positive budget that could include growth-supporting measures, tax reforms, relief for salaried classes, and incentives for key sectors such as exports, IT, and agriculture.
Key Drivers
Blue-chip stocks in banking, oil and gas, and cement have been key drivers in recent sessions, with the KSE-100 showing resilience despite global uncertainties. The market's performance reflects confidence in the government's fiscal direction and economic policies.
