ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) experienced a strong opening on Wednesday, with the benchmark KSE-100 Index climbing above the 123,000 mark shortly after trading began.
KSE-100 Hits 123,463.86 Amid Broad Sector Gains
By 9:40 a.m., the index stood at 123,463.86 points, reflecting an increase of 1,439.42 points or 1.18%. The rise was driven by widespread buying across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation firms.
Notable gains were recorded in heavyweights such as HUBCO, PSO, WAFI, MARI, OGDC, PPL, POL, HBL, MCB, MEBL, and UBL, all trading in positive territory.
Market Reaction Linked to Stable Taxation Measures
Experts attribute the upbeat market sentiment to the absence of major taxation changes in the federal budget. Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, told Business Recorder, “Capital gain dividends are retained at 15%.”
Finance Minister Muhammad Aurangzeb presented the 2025-26 federal budget on Tuesday, announcing a total outlay of Rs17.573 trillion. The budget aims to boost GDP growth to 4.2% compared to 2.7% last year.
Aurangzeb described the budget as the initial step toward building a competitive economy focused on increasing exports and fundamentally transforming the economic structure.
Fiscal Targets and Economic Outlook
The government has set an inflation target of 7.5% for the upcoming fiscal year. It projects a fiscal deficit of 3.9% of GDP, amounting to Rs5,037 billion, down from last year’s 5.9%. The primary surplus target is 2.4% of GDP, up from the current fiscal year’s budgeted 2%, recently revised to 2.2%.
Global Market Context
On the international front, equity markets and the US dollar showed cautious optimism following progress in US-China trade negotiations. However, investors remain watchful as details of the agreement and its durability are still unfolding.
US Commerce Secretary Howard Lutnick noted that the framework agreed upon addresses restrictions on rare earths and magnets but provided no detailed specifics.
Meanwhile, a federal appeals court has allowed President Donald Trump’s tariffs to remain in place pending further judicial review, adding an element of uncertainty to trade dynamics.
Asian shares outside Japan saw modest gains, with MSCI’s broadest index rising 0.2%, Japan’s Nikkei up 0.4%, and Australian stocks firming by 0.4%.
