The Pakistan Stock Exchange (PSX) continued its strong upward trend for the third straight day on Thursday. The KSE-100 index reached a record high of 126,025.99 points during intra-day trading. It gained 1,673.31 points, or 1.35%, marking a new milestone for the market. The previous close was 124,352.68 points.
This rally followed a positive reaction to the recent federal budget announcement. Investors welcomed the budget because it kept equity taxes unchanged and raised withholding tax on bank deposits. Analysts say this budget supports capital markets and the economy. The fiscal deficit is projected at 3.9%, with a Rs1 trillion federal development plan.
Trading was lively across many sectors, including cement, oil and gas, banking, and fertilizers. Stocks like Lucky Cement, Fauji Fertiliser, and Pakistan Petroleum saw strong gains. Market leaders said investor confidence grew as the government avoided new taxes and maintained subsidies for key industries.
Trading volumes also surged, with over 113 million shares changing hands and a total value of Rs11.3 billion. The rally was broad-based, with many stocks closing higher. However, foreign investors sold shares worth Rs1.1 billion during the period, slightly tempering the gains.
The PSX is enjoying historic gains driven by budget optimism and strong sector performance. The market crossed 126,000 for the first time, showing increased investor confidence. Experts remain positive but cautious about foreign selling and future market movements.