Karachi, June 6, 2025 – The Pakistan Stock Exchange (PSX) concluded the pre-Eid trading week on a high note, with the benchmark KSE-100 index registering a notable 1.63% weekly gain ahead of the federal budget for 2025–26, scheduled to be presented on June 10.
The trading week, shortened to four sessions due to the Eid-ul-Adha holidays beginning Friday, June 6, witnessed steady investor interest and positive market sentiment. The KSE-100 index closed strong on Thursday, June 5, driven by optimism over key economic developments and growing anticipation surrounding the upcoming budget announcement.
Analysts at Topline Securities attributed the week’s strong performance to optimism around a breakthrough in resolving Pakistan’s long-standing circular debt issue. The government finalized a landmark loan package worth Rs 1.275 trillion with around 18 commercial banks. Additionally, approval of an $800 million loan from the Asian Development Bank (ADB) under Pakistan’s public finance program provided further support to investor confidence.
The favorable market momentum came despite broader macroeconomic challenges. Notable developments during the week included the Consumer Price Index (CPI) inflation for May, which stood at 3.5% — a sharp increase from April’s 0.3%. Meanwhile, Pakistan’s trade deficit narrowed to $2.6 billion in May, reflecting a 23% month-on-month decline.
The upcoming budget remains a focal point for investors, with market participants speculating on potential tax reforms, development allocations, and fiscal consolidation measures. Many expect the budget to contain business-friendly initiatives, further supporting the positive trend in the KSE-100 index.
Trading activity remained robust, with the average daily traded volume reaching 660 million shares and the average daily traded value standing at Rs 27.8 billion. This healthy participation indicates strong investor engagement as the market eyes potential opportunities post-budget.
In summary, the KSE-100 index’s weekly performance reflects growing investor optimism and a favorable outlook as the government prepares to unveil its budget, aiming to address fiscal challenges while promoting economic recovery.