Late profit-taking wipes out gains at PSX
Pakistan Stock Exchange (PSX) saw continuous fluctuations on Thursday as the benchmark KSE-100 index ended with a loss of over 250 points after experiencing some volatility.
The index began the day on a positive note, reaching its intra-day high of 126,718.28. However, in the latter part of the session, bears took over, dragging it to an intra-day low of 123,846.55.
At close, the benchmark index settled at 124,093.12 level, a decrease of 259.56 points or 0.21%.
Addressing the post-budget conference, Finance Minister Muhammad Aurangzeb on Wednesday warned that additional revenue measures of up to Rs500 billion would be taken next fiscal year, if enabling amendments and legislation on enforcement were not passed by parliament, adding that all the budget figures were locked with the International Monetary Fund (IMF).
Aurangzeb presented the federal budget 2025-26 to the parliament on Tuesday, with a total outlay of Rs17.573 trillion, targeting a GDP growth rate of 4.2% against 2.7 per cent in the outgoing year.
On Wednesday, the PSX extended its rally as key indices posted strong gains, fueled by robust investor participation and improved sentiment following the positive announcements in the federal budget.
The benchmark KSE-100 Index rose by 2,328 points, or 1.91%, to close at 124,352.68 points, up from 122,024.44 points in the previous session.
Internationally, global stocks and the dollar slipped on Thursday as investors assessed a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dampened risk sentiment.
Attention in financial markets this week has been focused on the US-China trade talks, which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students to access US universities.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three-year high on Wednesday. Japan's Nikkei slipped 0.7%, while U.S. and European stock futures fell.
China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high.
Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit US assets, especially the dollar, as they worried about rising prices and slowing economic growth.
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