Bulls Run Rampant Following Budget as PSX Closes at All-Time High

The proposed budget for the next fiscal year has been received well by investors at the Pakistan Stock Exchange (PSX), propelling the benchmark KSE-100 index by over 2,000 points to close at a new all-time high. At close the KSE-100 Index was up 2,328 points or 1.1 percent to close at a record-high level of 124,352 points. In a note earlier in the day, brokerage firm Topline Securities said that contrary to expectations of increase in tax rates on capital gain tax and dividend income from stocks, the rates have remained unchanged. This alongside, reduction in super tax, and increase in tax on bank deposits will act as positive for market, it added. The firm highlighted that its strategy report from November last year mentioned that successful passage of budget FY26 in line with IMF guidelines will serve as catalyst in re-rating of market multiple to historic average of 7x. Market is currently trading at 2026E PE of 5.2x. Toplined said it maintains its base case Index Target of 127,000 for Dec 2025. However, with higher liquidity amidst conversion from fixed income to equities, index can cross 150,000 mark assuming successful IMF review in Sep 2025 and political/geo-political stability, it added. A total of 1,041,129,574 shares were traded during the day as compared to 592,952,761 shares the previous trading day, whereas the price of shares stood at Rs. 46.70 billion against Rs. 21.827 billion on the last trading day. As many as 477 companies transacted their shares in the stock market, 282 of them recorded gains and 157 sustained losses, whereas the share price of 38 companies remained unchanged.