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Two investors can be seen discussing in front of the digital stock board at the Pakistan Stock Exchange. — AFP/File
#Stocks #stay #rangebound #geopolitical #tensions
KARACHI: The Pakistan Stock Exchange (PSX) took a slight advantage during the outgoing week, which increased by 0.4 percent on a week’s (Wah) basis in the Benchmark’s SE -100 index.
Although investors’ emotions were rejoiced in early Saturday through a market -friendly budget and strong economic statistics, the geographical political tension was weighed over the benefits by the end of the week and a period of profit was created.
The market is expected to be bound in a nearby period, as geographical political risks can cause faster emotions. With the beginning of the debate in Parliament, investors will also look closely at further progress on foreign arrival, external financing and possible review of budget proposals.
The market was opened on a positive note as the federal budget for fiscal year 26 gave rise to hope among investors. With market participants, with its extensive financial stability approach, the government’s decision to make no change in the Capital Guinness Tax (CGT) and dividend tax rates was considered appropriate. JS Global analyst Syed Daniel Hussein said, “PSX welcomed the budget fiscal year 26 as the government did not announce any negative steps for the capital markets, where the CGT provisions were better than expected, which led to mutual funding to the Equity.”
The KSE-100 index rose to 2.2 % in the first two sessions of the week, reached height of 124,353 points at each time. However, after the global developments, emotions were cautious on Friday. The United States imposed a 50 percent tariff on steel imports from key trade partners, while tensions in the Middle East increased after the Israeli strike in Iran, killing senior military personnel. These developments improved the weekend.
On a weekly basis, the KSE -100 scored 502 points, which is equal to a 0.4 % increase. On average, the volume of daily trade increased by 907 million, up 37 % in the weekend, while the average daily trade price increased by 33 % to Rs 37 billion. Topline securities analyst Nabil Aaron noted, “The total financial tone of the budget budget, combined with the privileges for the salaried class and the construction sector, created a constructive environment for equity.”
The Finance Minister unveiled a budget of Rs 17.3 trillion for fiscal year 26. The purpose of the government is to reduce the fiscal deficit by 3.9 % of GDP and get a basic additional amount of 2.4 %. The tax revenue is estimated at Rs 14.1 trillion, which is 19 % higher, while the Public Sector Development Program (PSDP) has been allocated Rs 1 trillion, which represents a 29 % increase. The salaried class relief measures included tax cuts in the first three -income slab, while additional measures were announced to promote construction activities.
Macroeconomic indicators also added aid to market performance. Remittances in May were $ 7 billion, which increased from 16 % to months (moms) and 14 % year -on -year, making it the second highest monthly record. By eleven months of fiscal year 25, the total remittances reached about $ 35 billion, which is 29 % higher than the same period last year. By the end of June, the government indicated plans to get $ 2 billion from commercial banks to help raise foreign exchange reserves of the State Bank of Pakistan (SBP) to $ 14 billion.
Further reinforcing emotions showed data of a 1.8 % increase in large -scale manufacturing (LSM) in March 2025, which indicates signs of gradual rehabilitation in industrial activity. Meanwhile, car sales increased sharply in May, which increased by 31 % year -on -year, which is another indication of consumer confidence.
During the week, at the government’s T -Bill auction, Rs 853 billion was collected against the target of Rs 900 billion. Production has declined between 1 to 25 points, suggesting inflation expectations and a possible room for financial relaxation in the next months.
Analysts expect electoral interest in stocks linked to construction, banking and consumer sectors, as the budget implementation and international developments are exposed.
