Investors Optimistic as PSX Surges Amid Budgetary Concerns

Market participants at the Pakistan Stock Exchange (PSX) remained optimistic as the KSE-100 Index surged by over 200 points on Wednesday, shrugging off worries about budgetary measures. The index briefly crossed the 73,000 mark during the first half of trading before experiencing some profit-taking towards the end of the day, closing at 72,797.43 with a gain of 0.29%.

Analysts attributed the market's positive performance to investors re-entering after reacting excessively to rumors and unverified reports, leading to a bullish trend. Sectors like automobile assemblers, commercial banks, and oil and gas marketing companies witnessed notable buying activity, with key stocks such as OGDC, PPL, PSO, and SHEL performing well.

The government is set to unveil a growth-oriented federal budget for the fiscal year 2024-25, with an expected outlay exceeding Rs18 trillion. Despite initial concerns, market sentiment stabilized as the day progressed, reflecting confidence in the upcoming budget presentation on June 12.

On the global front, Asian shares showed a mixed performance, with the dollar holding steady ahead of key US inflation data and the Federal Reserve policy decision. In the currency market, the Pakistani rupee saw a slight depreciation against the US dollar, closing at 278.61 in the inter-bank market.

While trading activity at the PSX saw a decrease in volume and share value compared to the previous session, notable companies like K-Electric Ltd, PIA Holding Company, and WorldCall Telecom attracted investor interest. Out of the 435 companies traded, 232 saw gains, 130 recorded losses, and 73 remained unchanged.

The positive movement in the Pakistan Stock Exchange amidst budgetary concerns reflects investor resilience and confidence in the market's potential. With the upcoming budget announcement and global economic factors at play, market participants are closely monitoring developments to make informed investment decisions.