PSX closes at historic high amid ADB financing approval

KARACHI: The Pakistan Stock Exchange (PSX) closed at a historic high of 120,450.87 points on Tuesday, gaining 1,573.07 points or 1.32 per cent.

The rally was driven by the Asian Development Bank’s (ADB) approval of an $800 million financing package and optimism surrounding the upcoming federal budget for FY26, analysts said.

“Stocks hit an all-time high, led by across-the-board gains, following the ADB’s $800 million financing approval. The government’s FY26 growth target of 4.2 per cent and the approval of Rs880 billion under the Public Sector Development Programme (PSDP) also boosted investor sentiment,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

Mehanti added that expectations of budgetary relief for oil refineries, real estate, and the agriculture sector, along with gains in the rupee, acted as catalysts for the bullish close.

The benchmark index maintained a positive trajectory throughout the session as investors positioned themselves ahead of the FY26 budget announcement. Despite intra-day fluctuations, the overall sentiment remained upbeat, supported by selective buying, according to Ismail Iqbal Securities.

After shedding over 800 points in recent sessions, the PSX saw a strong rebound on Tuesday.

“Market sentiment was buoyed by reports of successful budget talks with the IMF, as confirmed by the Prime Minister, alongside the ADB’s $800 million loan approval to support Pakistan’s public finance reforms,” Al Habib Capital stated.

“The index surged to an intraday high of 1,816 points after news broke of the ADB’s loan — a significant vote of confidence in Pakistan’s economic reform efforts. The IMF’s nod to the budget proposals further reinforced hopes of fiscal discipline and policy continuity,” said Topline Securities Ltd.

Key index movers included FFC, HBL, EFERT, LUCK, and BAHL, which collectively contributed 691 points to the day’s gain.

Market participation remained strong, with total traded volumes reaching 577 million shares and a traded value of Rs26.8 billion. K-Electric Limited (KEL) led the volume chart with 144 million shares changing hands.