PSX hits record high amid investor optimism ahead of budget

(Web Desk): The Pakistan Stock Exchange (PSX) reached a historic milestone on Tuesday, with the benchmark KSE-100 index surging 782.56 points to 122,423.56 during intraday trading—a gain of 0.64%.

The index briefly peaked at 122,611.53 points before settling slightly lower. This strong performance resumed after the Eidul Azha holidays and follows the presentation of the Economic Survey 2024-25 on Monday, boosting investor confidence ahead of the federal budget announcement.

Trading volumes remained robust, with 144 million shares exchanged, valued at Rs7.78 billion. The previous session had closed at 121,641.00 points. Market momentum carried over from last week, when the KSE-100 index closed at 121,641 on June 4, marking a weekly gain of 1,950 points or 1.63%.

The rally was fueled by several positive developments, including successful budget negotiations with the International Monetary Fund (IMF), the Asian Development Bank’s approval of an $800 million financing package, and the finalisation of a Rs1.275 trillion circular debt resolution agreement with banks.

Improving macroeconomic indicators further boosted market sentiment. These include a 10% year-on-year increase in petroleum sales, a significant drop in CPI-based inflation to 3.5%, and a 23% month-on-month decline in the trade deficit. However, the State Bank of Pakistan’s foreign exchange reserves fell slightly by $7 million to $11.5 billion.

Sector-wise, the gains were led by commercial banks, power generation, fertiliser, and food products. Despite foreign selling of $14.7 million—higher than the previous week—domestic investor optimism kept the market buoyant.