PSX KSE-100 Index Surges Past 124,000 Mark

The Pakistan Stock Exchange (PSX) experienced a vibrant opening today, with the benchmark KSE-100 Index soaring beyond the 124,000 threshold. During intra-day trading on Wednesday, the index witnessed a substantial gain of over 2,300 points.

As of 12:05pm, the KSE-100 Index was recorded at 124,325.49, reflecting an increase of 2,301.05 points, equivalent to a 1.89% rise.

Widespread buying interest was evident across various key sectors, including automobile manufacturers, cement, commercial banking, oil and gas exploration, oil marketing companies (OMCs), and power generation. Major stocks that significantly contributed to the index’s performance included HUBCO, PSO, WAFI, MARI, OGDC, PPL, POL, HBL, MCB, MEBL, and UBL, all of which traded positively.

Taxation Stability Boosts Investor Confidence

According to Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, the positive trend at the PSX is partly attributable to the government’s decision to maintain existing tax policies without introducing any significant alterations. He highlighted that the capital gain dividends tax rate remains steady at 15%.

Federal Budget 2025-26 Highlights

Finance Minister Muhammad Aurangzeb presented the federal budget for the fiscal year 2025-26 to the parliament on Tuesday. The budget outlines a total expenditure of Rs 17.573 trillion and aims for a GDP growth rate of 4.2%, a step up from the 2.7% recorded in the previous year.

Aurangzeb characterized the budget as the inception of a strategic initiative focused on fostering a competitive economy, enhancing economic productivity to drive export growth, and fundamentally restructuring the economy’s core dynamics.

The government has set an inflation target of 7.5% for the upcoming fiscal year. In terms of fiscal management, the government projects a fiscal deficit target of 3.9% of GDP, amounting to Rs5,037 billion, a decrease from the previous fiscal year’s target of 5.9%. The primary surplus is projected to be 2.4% of GDP, compared to the initially budgeted 2% for the current fiscal year, which has been revised to 2.2%.

Global Market Cautious Amid US-China Trade Talks

Globally, stock markets and the US dollar showed a measured response to recent encouraging signs from US-China trade discussions. Market participants are awaiting further details regarding the outcomes of these talks and their long-term viability.

Bond investors are also closely monitoring US inflation data, which could reflect the initial impact of tariffs on prices. A Treasury auction will further assess the demand for debt.

In London, negotiators from the US and China reported that they had reached a consensus on a trade framework, which will now be presented to their respective leaders.

US Commerce Secretary Howard Lutnick suggested that the implementation plan should resolve restrictions on rare earths and magnets, although specific details were not provided.

A federal appeals court upheld President Donald Trump’s most extensive tariffs on Tuesday, pending a review of a prior court ruling that had blocked them, adding another layer of complexity.

Investors, wary due to previous trade-related setbacks, reacted cautiously. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, saw a modest increase of 0.2%.

Japan’s Nikkei index rose by 0.4%, and Australian stocks also edged up by 0.4%.

This information reflects an update from intra-day trading activities.