KSE-100 Index jumps to intraday high of 124,514.30, rising by 2,489.86 points, or 2.04%
June 11, 2025 : The Pakistan Stock Exchange (PSX) rallied sharply on Wednesday as investors cheered the newly unveiled federal budget for FY2025–26, driving the KSE-100 Index to a historic high amid optimism over fiscal stability and unchanged capital gains tax (CGT) on equities.
The benchmark KSE-100 surged to an intraday peak of 124,514.30, gaining 2,489.86 points or 2.04%, while touching a low of 123,237.99 — still up 1,213.55 points or 0.9%. The rally marked the market’s strongest performance in months and reflected renewed confidence in equities.
Prime Minister Shehbaz Sharif hailed the milestone, stating that the market’s record-breaking performance demonstrates investors’ faith in a “people-centric” and growth-oriented budget.
Market participants attributed the surge to the government’s decision to maintain CGT at 15% for equities while raising taxes on interest income — a shift expected to boost allocations toward the stock market.
“Favourable tax treatment has tilted the playing field in favour of equities,” said AAH Soomro, an independent economic analyst. “This could be the launchpad for a rally to 150,000 within a year.”
Analysts also pointed to the government’s adherence to fiscal discipline aligned with IMF expectations. The FY26 budget projects Rs19.3 trillion in revenues against Rs25.8 trillion in spending, resulting in a federal fiscal deficit of Rs6.5 trillion (5.0% of GDP). A consolidated national deficit of Rs5 trillion (3.9% of GDP) is projected, contingent on provincial governments generating a Rs1.5 trillion surplus.
Brokerage house Topline Securities noted that if the budget passes largely intact, the equity market’s price-to-earnings (P/E) ratio could see a re-rating from 5.2x to 7x — enhancing the valuation appeal of listed firms.
Wednesday’s rally built on the previous day’s gains, when the KSE-100 Index rose 383.44 points (0.32%) to close at 122,024.44, setting the stage for continued bullish momentum following the budget announcement.
Market sentiment remains upbeat as investors digest the government’s pro-market stance, signalling a robust start to FY26 trading.
