KARACHI: The Pakis­tan Stock Exchange (PSX) resumed its record-setting trajectory on Friday as investors engaged in aggressive value-hunting following the passage of the federal budget for 2025-26, which included last-minute adjustments to appease coalition partners. The benchmark KSE-100 index surged 3,239 points intraday, briefly crossing the 125,000 mark, before settling at an all-time high of 124,379 — up 2,333 points or 1.91 per cent.

Ahsan Mehanti of Arif Habib Corporation said the rally was driven by political consensus on the Finance Bill 2025-26 and expectations of monetary easing by the State Bank of Pakistan (SBP), following declining yields in the recent government bond auction. He added that stability in the Middle East after the Iran-Israel ceasefire, along with rising global crude prices, also supported investor sentiment.

Topline Securities described the session as “bull dominated,” attributing the surge to fresh institutional liquidity amid speculation of new fiscal-year allocations into equity funds.

Major contributors to the index’s gains included Fauji Fertiliser Company, Lucky Cement, Meezan Bank, Pakistan Oilfields, Engro Corporation, Engro Fertiliser, and Oil and Gas Development Company, which collectively added 1,044 points.

Investor optimism lifts benchmark index to record 124,379

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said institutional-led buying dominated the day, with optimism fuelled by the smooth passage of the budget. “PSX resumed its bullish momentum post-profit-taking on Thursday, as investors repositioned ahead of FY26 equity reallocation,” he noted.

Investor sentiment was further buoyed by robust inflows under the Roshan Digital Account (RDA), which reached $10.38bn by May. Monthly inflows rose 13pc to $201m, while the number of accounts climbed to 823,224.

Analysts noted that the KSE-100’s ability to sustain levels above 122,000 signals strong upward momentum. A consistent hold above 120,000 could pave the way for a rally towards 130,000, backed by improving macroeconomic indicators and investor confidence.

Published in Dawn, June 28th, 2025