Karachi – The Pakistan Stock Exchange (PSX) ended Tuesday on a bullish note, with the KSE-100 Index surging by 1,573 points to close at a historic high of 120,450. This sharp rise marks the highest-ever closing for the benchmark index.
The rally followed a drop on Monday when the market fell 813 points, ending at 118,877, as investors booked profits ahead of key announcements. However, Tuesday’s dramatic recovery was fueled by growing investor confidence in the upcoming federal budget, expected to be unveiled on June 13.
Analysts say the rally was supported by institutional buying across major sectors like commercial banking, energy, cement, and fertilizers. Speculation around tax reliefs, privatization plans, and policy continuity under the IMF program has encouraged both local and foreign investors.
Moreover, improving foreign exchange reserves, a stable rupee, and signs of cooling inflation have strengthened market sentiment. The announcement of subsidies for agriculture and energy, hinted at by officials, also helped boost stocks related to those sectors.
Trading volume was significantly high, with strong participation from both retail and institutional investors. If pre-budget optimism continues, analysts suggest the KSE-100 could push even higher, provided the government unveils business-friendly fiscal measures.