PSX soars 2,700 points amid budget buzz

Easing geopolitical tensions, oil plunge fuel market momentum

KARACHI:

Pakistan Stock Exchange (PSX) on Friday enjoyed a strong bullish momentum amid budget announcement for fiscal year 2026-27, with the benchmark KSE-100 index closing at 172,400 points, gaining around 2,700 points.

The KSE-100 recorded another positive session and closed at 172,399.9, gaining 2,696 points (+1.59% day-on-day). "The positive performance was supported by broad-based buying across key sectors as investor sentiment improved significantly throughout the session," said Ahmed Sheraz of KTrade Securities.

Trading activity remained robust, with the KSE-100 volumes reaching 320 million shares. Among the major volume contributors, The Bank of Punjab saw trading in 53 million shares, followed by Maple Leaf Cement with 36 million shares and Pakistan International Bulk Terminal with 25 million shares.

The rally was primarily driven by strong positive cues from global markets. Overnight gains in US equities improved the overall risk appetite, while international oil prices declined sharply, providing additional support to investor sentiment.

Brent crude fell by more than 5% during the session and briefly traded below $86 per barrel after US President Donald Trump announced that the planned military strikes had been called off and indicated that a diplomatic understanding had been reached. He also acknowledged the role of regional and strategic partners in helping ease tensions.

The sharp decline in oil prices helped alleviate concerns over inflationary pressures and potential disruptions to global economic activity, encouraging investors to increase exposure to equities. Going forward, market direction is likely to remain dependent on developments in global geopolitics, trends in international oil prices, and the FY27 budget.