Record rally continues as PSX takes cue from low fiscal deficit

KSE-100 index rises 985 points, crosses 143k on strong local and foreign inflows

Listen to article

KARACHI:

The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Tuesday, with the benchmark KSE-100 index climbing 985 points to close at an all-time high of 143,037.

The surge was fuelled by robust local and foreign inflows, broad gains across key sectors and positive fiscal data. Pakistan’s fiscal balance improved sharply for FY25, recording a deficit of 5.38%, the lowest in nine years. It reinforced investor confidence and heightened optimism for the rest of the week.

In its review, Topline Securities remarked that bulls continued to charge ahead as the KSE-100 index hit another record high, building on the previous day’s momentum. The index soared to intra-day peak of 1,229 points, before settling at 143,037, up 985 points (+0.69%).

Investor confidence remained buoyant, fuelled by robust local and foreign inflows and broad-based sector-specific rallies. Sentiment further strengthened as Pakistan reported a nine-year low fiscal deficit of 5.38% for FY25. It came with 36% year-on-year revenue growth that outpaced an 18% rise in expenditures, beating both the government and IMF’s 5.6% deficit forecast, Topline mentioned.

The market’s upward trajectory reflects optimism about fiscal discipline, macroeconomic stability and a strong earnings outlook, setting the stage for sustained momentum in the sessions ahead.

Major positive contributors included Fauji Fertiliser Company, UBL, MCB Bank, Hub Power and Engro Fertilisers, which collectively added 679 points to the index. On the downside, Pakistan Petroleum, Bank AL Habib and HBL shaved off 142 points, added the brokerage house.

Overall trading volumes decreased to 549.7 million shares compared with Monday’s tally of 666.4 million. Traded value dipped to Rs37 billion as compared to Rs42.9 billion in the previous session.

Shares of 484 companies were traded. Of these, 239 stocks closed higher, 217 dropped and 28 remained unchanged. Fauji Cement was the volume leader with trading in 31.7 million shares, rising Rs1.86 to close at Rs49.51.