PSX soars to new high of over 133,000 points in intraday trade
PSX soars to new high of over 133,000 points in intraday trade | تازہ ترین پاکستان کی خبریں
PSX soars to new high of over 133,000 points in intraday trade — The Pakistan Stock Exchange (PSX) soared to new highs on Monday as shares crossed the 133,000 barrier, with analysts attributing the optimism to a “fa...
The Pakistan Stock Exchange (PSX) soared to new highs on Monday as shares crossed the 133,000 barrier, with analysts attributing the optimism to a “favourable” taxation regime for equities following the passage of the federal budget.
The benchmark KSE-100 index rose by 1,771.48 points, or 1.34 per cent, to stand at 133,720.54 points at 11:2am, from the previous close of 131,949.06 points.
The PSXcommencedthe new fiscal year on a bullish note last week, as the KSE-100 index posted arobust 6.1pc gainduring the outgoing week. Continuing that momentum, the market extended its record-setting rally for theseventhconsecutive session today.
Awais Ashraf, director of research at AKD Securities, noted: “A favourable taxation regime for equities and the increasing likelihood of equities outperforming other asset classes, amid improving macroeconomic indicators and lower inflation, have channelled flows towards equities.”
He highlighted that there was a “continuation of monetary easing — driven byfalling inflation, fiscal discipline, a strong external account and a focus on structuralreforms— which will keep equities in the limelight”.
Yousuf M. Farooq, research director at Chase Securities, toldDawn.com: “We believe the market is firmly in Phase 2 of the bull run, marked by rising retail participation, higher trading volumes, and broad-based gains across sectors.”
He noted that thepassageof the Finance Act 2025-26 last week with “minimal surprises”, geopolitical calm, optimism aroundcircular debt resolution, and the potential signing of atrade dealwith the United States have all contributed to improving investor confidence.
“Retail investors should focus on long-term investing, staying consistent with their risk appetite and avoiding overreaction to short-term fluctuations,” Farooq cautioned.
“While pockets of speculation have emerged — typical of a bull market — overall valuations remain reasonable,” he added, advising investors to temper return expectations as “forward returns are likely to normalise compared to the outsized gains seen over the past two years”.
The upbeat sentiment has beensupportedby stabilising macroeconomic indicators. Inflation eased to anine-year lowof 3.2pc in June from 3.5pc in May. The trade deficit narrowed to $2.3bn for June — down 9pc month-on-month and 3pc year-on-year — while the full-year trade deficit for FY25 stood at $26.3bn, up 9pc from FY24.