The buying spree at the Pakistan Stock Exchange (PSX) continued on Wednesday, fueled by optimistic reports that discussions with the International Monetary Fund (IMF) regarding the upcoming federal budget have progressed positively. The KSE-100 Index closed at a record high of 121,798.86, up 1,347.99 points or 1.12% for the day.
During trading, the index touched an intra-day peak of 121,882.47, reflecting strong market enthusiasm. According to Sana Tawfik, Head of Research at Arif Habib Limited (AHL), “Attractive valuations are stimulating this buying momentum,” a sentiment echoed by other market analysts.
On Tuesday, the PSX also recorded an all-time high, buoyed by favorable budget expectations and the Asian Development Bank’s announcement of an $800 million loan to Pakistan. The index had jumped 1,573.07 points (or 1.32%) to end at 120,451, marking the first time closing above the 120,000-point threshold.
In the broader Asian markets, stocks saw modest gains as investors prepared for increased U.S. tariffs on steel and aluminum, adding tension to ongoing trade disputes. South Korea’s stock market and currency strengthened significantly following the election of pro-reform candidate Lee Jae-myung, lifting the KOSP by over 2%, reaching its highest point since August 2024.
In Japan, the Nikkei index rose 0.8%, while stocks in Taiwan gained 1.6% after shares of tech giant Nvidia led to a surge in the U.S. market the previous day.
Meanwhile, data released on Wednesday indicated a rise in U.S. job openings for April, but layoffs also increased, highlighting potential pressures on the labor market amid continuing trade tensions. Investor focus remains on a prospective dialogue between U.S. President Donald Trump and Chinese leader Xi Jinping, as relations between the two economic powerhouses continue to be strained.
In local currency news, the Pakistani rupee saw a slight decline against the U.S. dollar, depreciating by 0.04% to settle at 282.22 in the inter-bank market, down Re0.10 from the previous day.
Trading volume on the all-share index rose significantly from 578.16 million to 710.59 million shares, with the overall value of shares increasing from Rs26.83 billion to Rs35.22 billion.
Sui South Gas topped the trading volume with 51.63 million shares, followed closely by Fauji Foods Ltd with 51.39 million shares, and K-Electric Ltd with 41.40 million shares. Overall, shares of 475 companies were traded, with 264 companies experiencing gains, 170 facing losses, and 41 remaining unchanged.
