Pakistan Stock Exchange Hits All-Time High

June 4, 2025: The Pakistan Stock Exchange (PSX) achieved a significant milestone, with its benchmark KSE-100 index hitting an all-time high, crossing the 121,000-point mark for the first time during intraday trading on Wednesday, June 4, 2025

Today, the KSE-100 index reached an intraday high of 121,736.39 points, gaining 1,239.84 points or 1.03% at the time of the report’s filing. The index eventually closed at 121,798.86, a gain of 1,347.99 points or 1.12%.

Yesterday, on June 3, 2025, the PSX had already set a new record, closing at 120,450.87 points, marking its first-ever close above 120,000 points. On June 4, the total trading volume stood at 710,591,203 with 351,407 trades, resulting in a value of 35,216,551,435.28. Additionally, futures trading had a volume of 147,692,000 with 52,615 trades and a value of 8,399,150,615.00.

Throughout the year, KSE-100 has demonstrated remarkable growth, gaining 43,354 points or 55.27% during the fiscal year, and increasing by 6,672 points or 5.80% in the current calendar year.

The recent approval of an $800 million financial package by the ADB for Pakistan under the Resource Mobilization Reform Program (Subprogram-II) served as the catalyst. This package includes a $300 million policy-based loan (PBL) and a $500 million program-based guarantee (PBG).

Positive sentiments in the market are also attributed to the successful talks with the International Monetary Fund (IMF) concerning the upcoming federal budget.

Analysts have noted that improving macroeconomic indicators and a more stable outlook for the country have contributed to the sustained buying momentum. This includes factors like declining inflation, rupee stability, and the government’s adherence to IMF-backed reforms leading to sustainable economic growth.

Key sectors such as commercial banks, technology and communication, oil & gas exploration companies, cement, and power generation & distribution have significantly contributed to the index’s gains. While the market has seen record highs, it has also experienced volatility. Earlier in the week (on Monday), the KSE-100 index dropped due to concerns over proposed tax hikes (particularly on banking and saving schemes), additional petroleum levies, and rising inflation (CPI increased by 3.5% year-on-year in May).

This highlights that while investor confidence is high, the market remains sensitive to policy changes and economic uncertainties. Analysts suggest that despite the current bullish trend, caution is advised, and investor participation is expected to be selective ahead of the FY26 budget announcement.