PSX drops after crossing 126,000 barrier for first time

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The Pakistan Stock Exchange (PSX) experienced a rollercoaster ride on Thursday. The benchmark KSE-100 index surged to a record high of 126,025.99 points during intra-day trading, marking its third consecutive day of gains.

However, by the close of the session, the market retreated into negative territory, erasing earlier gains.

PSX benchmark KSE-100 Index closed at 124,093.12, falling by 259.56 points, or 0.21%, from its previous closing of 124,352.68.

During the session, the index rose by 1,673.31 points, or 1.35%, in early trading, marking a new milestone for the bourse during the intra-day trade.

The index reached a daily high of 126,055.32 and a low of 124,807.09.

Trading volume was recorded at 113,574,464 shares, with a total value of 11,375,804,736.

Earlier on Wednesday, PSX saw a significant rally, with the KSE-100 index soaring by 2,328 points (1.91%) to an all-time high of 124,352.68, fueled by investor optimism following the federal budget announcement.

The budget, which maintained the status quo on equity taxation and increased withholding tax on bank deposits, was welcomed by market participants as it was seen as favourable for capital markets and the economy.

Analysts highlighted that the budget's provisions, including projections of a 3.9% fiscal deficit and a Rs1 trillion federal PSDP, added to the bullish sentiment.

Read more: PSX at new peak as budget sparks optimism

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.

Broad-based participation drove the rally, with strong gains in sectors like cement, oil and gas, banking, and fertilisers. Notable stocks such as Lucky Cement, Fauji Fertiliser, and Pakistan Petroleum saw significant gains.

Investor confidence was further boosted by the avoidance of new taxes and the continuation of subsidies for key sectors.

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 market experienced a sharp rise in trading volumes, reaching 1.04 billion shares, with a value of Rs46.7 billion. The day's trading also saw a positive trend in shares, with 283 stocks closing higher.

However, foreign investors sold shares worth Rs1.1 billion, as reported by the National Clearing Company.