PSX extends rally as budget stability by increasing remittance remittances

Bourse continued its upward momentum on Thursday, as investor confidence remained strong after the federal budget and increasing remittances.

The Pakistani Stock Exchange (PSX) reference index went up to an intra-group high of 126,220.26, earning 1,867.58 points or 1.5%, crossing the sign of 126,000 points for the first time. The index reached a low 124,807.09, reflecting the 454.41 points or 0.37%.

“The market is rallying for the latest sessions due to budget expectations, a budget with mute that remains the course in integration and keeps continuity to the market,” said Ahfaz Mustafa, CEO of ISMA IQBal Securities.

“This, along with the Minister of Finance’s observations for further interest rate cuts, is supplying the market,” he added.

Removals in Pakistan increased to $ 3.7 billion in May, marking the second highest monthly inflow. The number reflects an increase of 16% in April and an increase of 13.7% compared to last May. Cumulative inflows for the first 11 months of FY25 amounted to $ 34.9 billion, up $ 28.8% from $ 27.1 billion in the same period of FY24.

Analysts linked growth to the IMF -backed economic recovery, improved exchange rate stability and structural improvements to the banking system, which encouraged more formal use of channels by overseas Pakistanis. The May spike was also attributed to eid -related transport for sacrificial animals.

At auction on Wednesday of Wednesday’s Treasury accounts, the government increased the RS853 billions, slightly below the target of 900 billion Rs, amid a total of 2,992 billion of Rs.

Cutting yields decreased in all tenors: one month by 1bps to 11.09%, three months by 10bps to 11.05%, six months to 22bps at 10.97%and 12 months from 25bps to 10.95%.

On Wednesday, the KSE-100 index increased by 2,328.24 points, or 1.91%, to close a record of 124,352.68. The high and low of the day was on 124,588,17 and 123,237,99 respectively, as the market cheering on the continuation of taxpayers’ taxpayer policy and broader fiscal discipline.