Karachi, June 2, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday as mounting concerns over the upcoming fiscal year 2025–26 budget rattled investor sentiment.
The benchmark KSE-100 index fell by 813 points, closing at 118,878, down from Friday’s close of 119,691 points.
The PSX experienced considerable volatility throughout the session, driven by both global market cues and heightened domestic uncertainty. Analysts from Topline Securities reported that the KSE-100 index fluctuated within a broad range, reflecting investor anxiety over the anticipated budget measures, particularly a proposed 2–3% increase in taxes on passive income such as dividends and interest earnings.
At its intraday peak, the index surged by 1,018 points, but bearish momentum took over, driving it down to an intraday low of 899 points before settling at a net loss of 813 points. This persistent selling pressure was primarily attributed to concerns about the fiscal tightening expected in the FY26 budget.
Despite the decline, some positive movement was observed in select stocks. Companies such as PKGP, NATF, MEBL, NBP, and BAHL collectively contributed 201 points in gains. However, these were offset by significant losses in major scrips like SYS, ENGROH, and PPL, which together shaved off 341 points from the index.
The PSX remained active, with trading volumes reaching 496 million shares and the total traded value standing at PKR 23.4 billion. DCL topped the volume charts, with over 40 million shares traded.
Analysts believe the market is entering a cautious phase as investors await clarity on the upcoming FY26 budget, set to be announced on June 10. The PSX is expected to remain volatile in the days ahead, with any policy announcements, tax reforms, or fiscal tightening in the budget likely to influence index movement and investor behavior.
This was the third straight session where budget-related speculation weighed heavily on the PSX, with market participants closely monitoring developments that could affect corporate profitability and investor returns.
The government has announced to present the federal budget on June 10, 2025.