The stock market extended its winning streak on Thursday, lifted by investor confidence in post-budget stability and record-setting remittances, as investors doubled down on expectations of monetary easing and fiscal continuity.
“The market has been rallying for the last few sessions due to budget expectations. A mute budget which stays the path on consolidation and keeps continuity gives certainty to the market,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities.
“This along with remarks by the finance minister for further rate cuts is fueling the market,” he added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 126,718.28, gaining 2,365.6 points, or 1.9%, crossing the 126,000 points mark for the first time ever. The index touched a low of 124,731.16, reflecting a rise of 378.48 points, or 0.3%.
Remittances to Pakistan surged to $3.7 billion in May, marking the second-highest monthly inflow on record. The figure reflects a 16% increase over April and a 13.7% rise compared to May last year. Cumulative inflows for the first 11 months of FY25 reached $34.9 billion, up 28.8% from $27.1 billion in the same period of FY24.
Analysts linked the growth to the IMF-supported economic recovery, improved exchange rate stability, and structural enhancements in the banking system, which encouraged more formal channel use by overseas Pakistanis. The May spike was also attributed to Eid-related transfers for purchases of sacrificial animals.
In Wednesday’s auction of Market Treasury Bills, the government raised Rs853 billion, slightly below the Rs900 billion target, amid total bids worth Rs2,992 billion.
Cut-off yields declined across all tenors: one-month by 1bps to 11.09%, three-month by 10bps to 11.05%, six-month by 22bps to 10.97%, and 12-month by 25bps to 10.95%.
On Wednesday, the KSE-100 Index had surged by 2,328.24 points, or 1.91%, to close at a record 124,352.68. The day’s high and low stood at 124,588.17 and 123,237.99 respectively, as the market cheered the continuation of capital gains tax policy and broader fiscal discipline.