Karachi, May 27, 2025 — The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) recorded a modest gain of 112 points on Tuesday, closing at 118,333 points, up from the previous day’s close of 118,221 points.
Despite looming concerns over the upcoming fiscal budget for 2025–26, the index managed to edge higher in a volatile trading session.
Analysts at Topline Securities Limited noted that the KSE-100 index experienced a largely range-bound movement throughout the day. Market participants remained cautious due to budget-related uncertainty and monthly rollover pressures, resulting in choppy trading activity. The index fluctuated between an intraday high of 587 points and a low of 77 points, reflecting the market’s sensitivity to macroeconomic developments.
Investor sentiment was buoyed by strong performances from select heavyweight stocks, particularly MEBL, Systems Limited (SYS), Pak GasPort (PKGP), Pakistan Petroleum Limited (PPL), and D.G. Khan Cement (DGKC). These stocks collectively added approximately 223 points to the index, supporting the positive close.
Despite the macroeconomic overhang, the broader market displayed resilience. Total trading volume surged to 689 million shares, while the traded value reached PKR 23.8 billion — an indication of sustained investor participation. K-Electric Limited (KEL) led the volumes chart with a staggering 267 million shares traded, accounting for a major portion of the day’s total activity.
Market watchers attributed the marginal gain in the KSE-100 index to selective buying in energy, technology, and cement sectors, which were perceived to be better positioned ahead of the federal budget announcement next month. However, uncertainty around potential tax reforms, subsidy withdrawals, and fiscal targets continues to keep investors cautious.
While Tuesday’s 112-point rise may seem modest, it underscores the market’s underlying strength amid fiscal ambiguity. Analysts anticipate heightened volatility in the coming sessions as budget details become clearer, especially with speculation around corporate tax adjustments and inflation-control measures.
As the KSE-100 index braces for further movement driven by budget developments, market participants are advised to adopt a cautious stance, focusing on sectors with strong fundamentals and lower regulatory risks. The coming days are expected to test the market’s ability to sustain gains under increasing budget-related scrutiny and macroeconomic pressures.