ISLAMABAD: The Pakistan Stock Exchange (PSX) recorded a minimal gain of 0.03 percent by the close of trading on Monday, with analysts attributing the subdued performance to “slower trading activity” as investors remain cautious ahead of the upcoming federal budget announcement.
The federal budget for the next fiscal year, starting in July, is expected to be finalized in the coming three weeks. Budget discussions between Pakistan and the International Monetary Fund (IMF), which began on May 14, are scheduled to continue through May 23, according to the finance ministry.
The KSE-100 index increased by 40.49 points, or 0.03 percent, ending the day at 119,689.63 points as per PSX data.
“The KSE100 has started the week quietly, as shown by the reduced trading activity,” said Raza Jafri, head of Intermarket Securities, in a statement to Arab News. “Investors may be holding back until the FY26 Budget, expected in early June, is announced.”
Earlier this month, Pakistan’s stock market experienced volatility due to the most severe military conflict with India in decades. The nuclear-armed neighbors engaged in four days of intense hostilities using missiles, drones, artillery, and jets, before agreeing to a US-brokered ceasefire on May 10.
The conflict caused a 12 percent drop in the market from April 23 to May 8. However, the market rebounded strongly last week, gaining over 3,500 points and recovering nearly all of its losses.
