ISLAMABAD: The bourse continued its upward trajectory on Wednesday, extending gains as investors responded to improving sentiment and technical triggers.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed at 121,798.86 points, up 1,347.99 points, or 1.12%, from the previous close of 120,450.87.
During the session, the index climbed to an intraday high of 121,882.47, gaining 1,431.60 points, or 1.19%. The session’s low was recorded at 120,896.13, reflecting a gain of 445.26 points, or 0.37%.
“Payment of the circular debt coupled with rumours of reduction on various taxation and encouraging offtake numbers from cement and fertilisers have led to a broad-based rally,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“Also making new highs has triggered an upside on a technical basis,” he added.
The rally came as Prime Minister Shehbaz Sharif declared that talks with the International Monetary Fund (IMF) over the upcoming federal budget had been successful, hailing it as a step towards a new era of economic development.
Speaking in Peshawar on Tuesday, he said the government’s focus would now shift from stabilisation to sustainable growth, backed by institutional reforms.
Meanwhile, Pakistan’s economic team has reportedly persuaded the IMF to drop its demand for an increase in the Federal Excise Duty (FED) on fertiliser from 5% to 10% in the upcoming budget, a move expected to provide relief to the agriculture sector.
Separately, the Asian Development Bank (ADB) on Tuesday approved an $800 million financing pack-age to support Pakistan’s fiscal consolidation efforts.
The package comprises a $300 million policy-based loan and a $500 million policy-based guarantee aimed at mobilising commercial co-financing.
The funds will back reforms in tax policy, public expenditure, and digital governance under the Im-proved Resource Mobilisation and Utilisation Reform Program.
In the previous session on Tuesday, the KSE-100 Index surged by 1,573.07 points, or 1.32%, to close at an all-time high of 120,450.87 points. The index hit a high of 120,693.83 and a low of 119,129.52 during the session. –Agencies
