The Pakistan Stock Exchange (PSX) experienced a dip into negative territory on Thursday, as profit-taking emerged after the benchmark index had hit an all-time high earlier in the session. Investors were seen balancing optimism derived from robust remittance inflows and budgetary continuity against the imperative to secure recent gains.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index concluded the day at 124,093.12, registering a decline of 259.56 points, or 0.21%, from its previous close of 124,352.68. During the trading session, the index had ascended to an intraday high of 126,718.28, marking an increase of 2,365.6 points, or 1.9%, and successfully breaching the 126,000 points threshold. Conversely, the index also touched a low of 123,846.55, reflecting a fall of 506.13 points, or 0.41%.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, commented, “The market has been rallying for the last few sessions due to budget expectations. A mute budget which stays the path on consolidation and keeps continuity gives certainty to the market.” He further added, “This along with remarks by the finance minister for further rate cuts is fuelling the market.”
Remittances to Pakistan saw a significant surge in May, reaching $3.7 billion, which marks the second-highest monthly inflow on record. This figure represents a 16% increase over April and a 13.7% rise compared to May of the previous year. Cumulative inflows for the first 11 months of FY25 amounted to $34.9 billion, an impressive 28.8% increase from $27.1 billion recorded in the corresponding period of FY24.
Analysts attributed this growth to the economic recovery supported by the IMF, enhanced exchange rate stability, and structural improvements within the banking system, which collectively encouraged overseas Pakistanis to utilize more formal channels for remittances. The notable spike in May was also linked to Eid-related transfers intended for the purchase of sacrificial animals.
In Wednesday’s auction of Market Treasury Bills, the government successfully raised Rs853 billion, marginally falling short of its Rs900 billion target, amidst total bids amounting to Rs2,992 billion. Cut-off yields demonstrated a decline across all tenors: the one-month yield decreased by 1 basis point (bps) to 11.09%, the three-month by 10 bps to 11.05%, the six-month by 22 bps to 10.97%, and the 12-month by 25 bps to 10.95%.
On Wednesday, the KSE-100 Index had experienced a substantial surge of 2,328.24 points, or 1.91%, closing at a record high of 124,352.68. The day’s high and low figures stood at 124,588.17 and 123,237.99 respectively, as the market reacted positively to the continuation of the capital gains tax policy and broader fiscal discipline measures.
