PSX at new peak as budget sparks optimism
The rally was fuelled by the announcement of federal budget, which maintained status quo on equity taxation and signalled economic recovery. Market players welcomed the avoidance of a major tax burden on capital markets and viewed the increase in withholding tax on bank deposits as a measure that would shift investment to stocks.
Arif Habib Corp MD Ahsan Mehanti observed that stocks reached a new all-time high, led by across-the-board activity, as investors cheered the status quo on equity taxes and higher withholding taxes on bank deposits in the FY26 budget.
IMF-driven projections of a 3.9% fiscal deficit, low current account deficit, 4.2% GDP growth, Rs86.5 billion in privatisation proceeds and Rs1 trillion federal PSDP drove the bullish momentum, he added.
At the end of trading, the benchmark KSE-100 index displayed a surge of 2,328.24 points, or 1.91%, and settled at 124,352.68.
JS Global analyst Mubashir Anis Naviwala said that the stock market welcomed the budget with strong optimism, breaking all resistance levels to cross the 124,000 mark. A new historic intra-day high of 124,588 was reached before the index settled at 124,353, up 2,328 points.
The rally was driven by broad-based participation, reflecting growing investor confidence. He recommended investors to accumulate stocks on dips in fertiliser, cement and banking sectors.
Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib wrote that the bourse acknowledged the FY26 budget with optimism. Investors viewed the budget as "neutral to positive", particularly in light of its alignment with fiscal prudence and IMF reform commitments, he said.
Najib pointed out that investor sentiment turned decidedly bullish as the budget did not incorporate new taxes or levies. The continuation of subsidies for key sectors and enhanced clarity on the government's economic direction further boosted market confidence.
KTrade Securities, in its report, said that the stock exchange responded positively to the budget, which was seen as supportive for capital markets. Key contribution to the index came from cement, oil and gas, banking and fertiliser sectors, with notable gains in Lucky Cement, Fauji Fertiliser, Pakistan Petroleum, Engro Holdings, Mari Petroleum, Pakgen Power and OGDC.
It anticipated continued upward momentum in the current week, driven by investor optimism around the budget and positioning ahead of potential economic tailwinds.
Overall trading volumes increased to 1.04 billion shares compared with Tuesday's tally of 593 million. The value of shares traded was Rs46.7 billion. Shares of 478 companies were traded. Of these, 283 stocks closed higher, 157 fell and 38 remained unchanged.
Pervez Ahmed Consultancy was the volume leader with trading in 78.3 million shares, rising Rs0.49 to close at Rs2. It was followed by WorldCall Telecom with 55.1 million shares, gaining Rs0.03 to close at Rs1.45 and Sui Southern Gas Company with 45.1 million shares, rising Rs3.74 to close at Rs41.14. Foreign investors sold shares worth Rs1.1 billion, the National Clearing Company reported.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
BRICS finance ministers make unified proposal for IMF reforms
RIO DE JANEIRO: Finance ministers from the BRICS group of developing nations called on Saturday for reform of the International Monetary Fund, including a new distribution of voting rights and an end to the tradition of European management at the helm. The joint statement by the group's finance ministers marks the first time the BRICS countries have agreed on a unified position on the proposed reforms. They agreed to back the shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights. 'Quota realignment should reflect members' relative positions in the global economy, while protecting the quota shares of the poorest members,' the ministers wrote in their statement after meetings in Rio de Janeiro, adding that the new formula should increase quotas for developing countries. Leaders of growing BRICS group gather for Rio summit The BRICS ministers called for a new formula weighted by economic output and purchasing power, considering the relative value of currencies, which should better represent low-income countries, said a Brazilian official who followed negotiations. The ministerial meetings came ahead of a leaders summit in Rio for the bloc that expanded last year beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates. That has added diplomatic clout to the group, which aims to speak for developing nations in the Global South, urging reforms of institutions long dominated by traditional Western powers. 'With full respect to a merit-based selection process, regional representation must be enhanced for the IMF management, overcoming the anachronistic post-World War II gentlemen's agreement that is unfit for the current world order,' the finance ministers wrote. Their statement also confirmed discussions to set up a new guarantee mechanism backed by the NDB, a multilateral bank funded by the BRICS, which aims to lower financing costs and boost investment in developing economies, as Reuters first reported on Thursday.
Express Tribune
17 hours ago
- Express Tribune
PSX kicks off FY26 with historic week
Listen to article The Pakistan Stock Exchange (PSX) opened the new fiscal year on a bullish note, with the benchmark KSE-100 Index surging to an all-time high of 131,949.06 points during the week ended July 4, 2025. The index gained 7,570 points or 6.1% week-on-week, driven by improving macroeconomic indicators, foreign inflows, and strong investor sentiment. The rally builds on momentum from the previous fiscal year (FY25), which closed with the PSX ranking the best-performing regional bourse, delivering a 60% annual return. Easing inflation, a reduction in electricity tariffs, and renewed interest from both local and foreign investors helped maintain the upward trajectory. Investor confidence was further boosted after Bloomberg reported that Pakistan led all emerging markets in reducing default risk. The country's probability of default dropped sharply from 59% to 47%, the biggest decline globally. Meanwhile, the number of billion-dollar listed firms on the PSX rose from six in December 2023 to 11 by July 2025. On Monday, the final trading day of FY25, the KSE-100 Index closed at a record 125,627 points, marking a 60% annual return. That day alone saw the index gain 1,248 points or 1%. The bullish momentum carried into FY26. On Tuesday, the market broke through the 126,000, 127,000, and 128,000 levels in a single session, closing at 128,199 with a gain of 2,572 points or 2.05%. On Wednesday, the index crossed the psychological barrier of 130,000 for the first time, closing at 130,344, up 2,145 points or 1.67%, amid growing optimism over improving fundamentals, a stable rupee, and increased foreign inflows. Thursday saw a "tug of war" between bulls and bears, with volatility marking the session. However, the bulls ultimately prevailed, and the index closed at 130,687, gaining 343 points or 0.26%. The week ended on Friday with another positive session. The KSE-100 climbed 1,262 points or 0.97% to close at 131,949, setting a new all-time high. According to Arif Habib Limited's (AHL) weekly report, the KSE-100 Index surged from 125,627.31 to 131,949.06 during the week, posting a 6.1% gain. The rally was broad-based, supported by improved macroeconomic indicators. Inflation for June 2025 eased to 3.2% from 3.5% in May, as reported by the Pakistan Bureau of Statistics (PBS). The National Electric Power Regulatory Authority (NEPRA) revised the electricity tariff downward to Rs31.59/kWh, from the earlier Rs32.73/kWhan average cut of Rs1.14 per unit. Meanwhile, the Oil and Gas Regulatory Authority (OGRA) announced a hike in gas prices across domestic and other consumer categories, effective July 1, 2025. In sector-specific developments, domestic cement sales declined by 2.4% year-on-year in FY25, falling to 38.6 million tonnes from 39.5 million tonnes in FY24. Foreign exchange reserves received a major boost as the State Bank of Pakistan (SBP) reported an increase of $3.66 billion to $12.73 billionthe second-largest weekly jump on record. On the regulatory front, the government introduced a National Electric Vehicle (NEV) levy, resulting in price increases across several car categories. JS Global's Syed Danyal Hussain noted that the KSE-100 index's strong FY25 close and continued FY26 momentum reflect improving sentiment. The index's 6% week-on-week increase was complemented by a 31% rise in average daily turnover (ADTO). Investor optimism was also driven by Pakistan securing $3.4 billion in rollover and refinancing from China, along with an additional $1.5 billion loan from Middle Eastern banks and multilateral institutions. Of this, $3.7 billion has already been reflected in reserves, pushing SBP's holdings to $12.7 billion. The SBP expects remaining inflows next week, which could push reserves to $14.51 billion. June 2025's CPI came in at 3.2% year-on-year, bringing the FY25 average to 4.5%, a dramatic drop from 23.4% in FY24.
Express Tribune
17 hours ago
- Express Tribune
Civil servants required to declare assets
Any person who files tax return after the end of due dates would be treated as a late filer and separate rates on the purchase or disposal of immovable property would apply to him. photo: AFP The federal government has fulfilled another key condition of the International Monetary Fund (IMF) by making the assets of public officials public. Now government officers from Grade 17 and above will be required to file their own and their family's assets digitally. With the president's approval, the Civil Servants (Amendment) Act 2025 has been issued via gazette notification. The Establishment Division has also forwarded the notification to all federal ministries and divisions. A new Section 15-A has been added to the Civil Servants Act 1973, which states that the details of government officials' assets will be made public through the Federal Board of Revenue. Officers will be required to disclose their domestic and foreign assets as well as their financial standing. The confidentiality of any officer's personal information will be maintained. Earlier this week, the government imposed new taxes on the public in line with IMF conditions. It has introduced a petroleum climate support levy with an additional climate levy of Rs2.50 per liter on petrol, diesel, and kerosene.
