PSX surges nearly 2,000 points ahead of federal budget presentation

KARACHI: The Pakistan Stock Exchange staged a sharp intraday rally on Friday, with the benchmark KSE-100 Index rising nearly 2,000 points before trading was suspended for Friday prayers, as investors positioned themselves ahead of Finance Minister Senator Muhammad Aurangzeb’s presentation of the federal budget for FY2026-27 later in the day.

During the morning session, the benchmark index climbed to 171,659.29 points, up 1,955.69 points or 1.15% from the previous close of 169,703.60 points. The market touched an intraday high of 171,692.23 points and a low of 170,946.54 points. Trading volume stood at 120,208,518 shares, while market turnover was recorded at Rs9.73 billion.

The upward move reflected strong buying interest through the session, with the intraday trend showing sustained momentum in the market. Friday’s gains came after a positive close a day earlier, when the KSE-100 Index had added around 276 points to finish near 169,704 points, extending optimism in the run-up to key fiscal announcements.

Economic survey supports sentiment

Investor mood was also shaped by the Pakistan Economic Survey 2025-26, released on Thursday, which presented a broadly encouraging picture of the economy. According to the survey, real GDP growth for FY26 was recorded at 3.7%, below the 4.2% target but higher than in previous years. Per capita income increased to $1,901, inflation eased markedly, and sector-wise performance remained positive, with agriculture expanding 2.89%, industry 3.51%, and services 4.09%.

The survey also showed stronger foreign exchange reserves and a small current account surplus, adding to the supportive backdrop for equities. Analysts said the market had been responding to expectations of a neutral to positive budget that may bring measures aimed at supporting growth, introducing tax reforms, providing relief to salaried groups, and offering incentives for sectors including exports, information technology and agriculture.

Blue-chip shares lead advance

Market participation remained concentrated in heavyweight sectors that have driven recent gains. Banking, oil and gas, and cement stocks were among the major contributors to the advance, with the KSE-100 Index continuing to show resilience despite global uncertainty.

The strong rise underscored the degree to which investors were focused on the budget announcement, with sentiment supported by both recent market momentum and the latest official economic data.