Stock Market Index KSE-100 spikes past 1,000 points in initial trading session.
Pakistan Stock Exchange Roars Back After Finance Bill Passage
Hold on to your trading hats, folks, 'cause the Pakistan Stock Exchange (PSX) just had a wild ride! With the government managing to pass the Finance Bill, 2025, our homegrown stock market bounced back in a big way, with the KSE-100 Index skyrocketing over 1,000 points during the opening hours of trade on Friday.
At 10:25am, the benchmark index was sitting pretty at around 123,122.09 level, a gain of 1,075.63 points or 0.88%. And it ain't just any old buying – across-the-board action was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and refineries. It's a green flash for index-heavy stocks like MARI, OGDC, POL, PPL, PSO, SSGC, HBL, MCB, and UBL.
Remember, the National Assembly passed the Finance Bill, 2025, a day prior, with a total outlay of Rs17.57 trillion for the fiscal year 2025-26. The passage of the bill, along with the rejection of all opposition amendments, provided a much-needed boost to investor confidence. Now, the market is singing the tune of fiscal policy continuity and economic stability.
But let's take a step back – things didn't look all that great for the PSX the previous day. It was a bit of a rollercoaster ride, with the benchmark KSE-100 Index plunging amid persistent selling pressure and a cloud of investor caution. However, as soon as that Finance Bill waslocked in, unease dissipated, and investor sentiment swung back in the market's favor.
Looking over the global market, Asia shares are riding high too, hitting a more than three-year peak on Friday. Spurred by a Wall Street rally, stock indexes around the world are on track for a positive close, with geopolitical tensions, trade worries, and tariffs taking a backseat for now. MSCI's broadest index of Asia-Pacific shares outside Japan touched its strongest level since November 2021 early in the session.
To top it off, positive news like the agreement between Washington and Beijing on rare earth shipments to the US, as well as US Treasury Secretary Scott Bessent's request to scrap the Section 899 retaliatory tax proposal from their tax and spending bill, has helped fuel the optimism in the markets, pushing Japan's Nikkei up by 1.5% and sailing past the 40,000 mark for the first time in five months.
So, there you have it – a day of wild swings in the PSX, driven by the passage of the Finance Bill and a wave of renewed confidence, as well as positive vibes from international markets. Buckle up for more market-driven thrills, folks – the stock market is never short on excitement!
This is an intra-day update.
Insights: The significant rise in the KSE-100 Index was fueled by renewed investor confidence following the passage of the Finance Bill, 2025, as it signaled fiscal clarity and economic stability. The rejection of all opposition amendments further bolstered investor optimism about the government's commitment to sound fiscal policy. Additionally, positive market sentiments and global economic indicators contributed to the upswing in the KSE-100 Index.
Stock trading enthusiasm surged in Pakistan as the KSE-100 Index skyrocketed due to renewed investor confidence following the Finance Bill, 2025's passage. Key sectors like automobile assemblers, commercial banks, and OMCs noticed significant buying activity, propelling stock prices of companies such as MARI, OGDC, POL, PPL, PSO, SSGC, HBL, MCB, and UBL. Meanwhile, Asia's financial markets also witnessed an upward trend, with Japan's Nikkei breaking past the 40,000 mark for the first time in five months. The positive global market mood was driven by agreements on rare earth shipments between Washington and Beijing and a request to remove the Section 899 retaliatory tax proposal from the US tax and spending bill, adding further fuel to the market's optimism.
