Fear of missing out and heavy mutual fund participation carried the equity market to record levels on Thursday, with analysts noting that investors continue to prefer stocks over weaker-performing alternatives.
“Liquidity from mutual funds is driving up the index. There is FOMO (fear of missing out) and disbelief of a correction,” said AAH Soomro, an independent investment and economic analyst.
“Economic sentiment is positive after improving US ties also. Mid caps with growth triggers are beginning to rerate,” he added
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index touched an intraday high of 168,619.32, gaining 2,978.99 points, or 1.8%, while the low of the day was recorded at 165,567.22, reflecting a decline of 73.11 points, or -0.04%.
“Investors’ preference for equities as an asset class due to lack of returns from other asset classes and taxation incentives,” added Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company.
Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday ruled out any mini-budget, despite the Federal Board of Revenue’s (FBR) Rs200 billion shortfall in the first quarter of FY26, adding that IMF review talks were moving in the right direction. He also noted pending tax-related court cases would help improve collections.
In the latest T-bill auction, the government raised Rs696 billion, short of its Rs750 billion target, while yields climbed across all tenors. The one-month cut-off yield rose 41 basis points (bps) to 11.1502%, the three- and six-month notes advanced about 20bps each to 11.0499%, and the 12-month yield climbed 19bps to 11.19%.
Pakistan’s inflation accelerated in September to 5.6%, overshooting the government’s 4.5% forecast and up sharply from 3.0% in August. The July–September inflation rate stood at 4.22%, down from 9.19% in the same period last year. Analysts linked the uptick to flood-related food supply disruptions.
On Wednesday, the KSE-100 Index edged up by 146.75 points, or 0.09%, to 165,640.34 points from 165,493.59. The session’s high was 166,522.61, while the low was 164,155.32.
