The Pakistan Stock Exchange (PSX) rallied, with the benchmark KSE-100 index surpassing its previous record high and setting a new one. Reports reveal that the bullish trend can be attributed to the Asian Development Bank (ADB) approving a financial package for Pakistan.

 

ADB cleared a $800 million policy-based loan and guarantee package to help Pakistan improve its public finances and push long-overdue economic reforms. According to reports, the approval came under the second phase of the “Improved Resource Mobilisation and Utilisation Reform Programme”, which focuses on rectifying how the federal government collects and spends money.

 

Reports reveal that Pakistan is set to receive a $300 million policy-based loan, which will be utilised to support reform efforts. Moreover, the ADB is offering a $500 million policy-based guarantee, which is the first of its kind by the Manila-based lender. 

 

These developments led to a surge in investor confidence, causing the KSE-100 index to cross 121,500 points during intraday trading. Bullish sentiments allowed the index to open in the green in the early hours of the day, with the upwards momentum continuing until closing hours.

 

The KSE-100 index reached an intraday high of 121,882.47 points. The index peaked at 3:01 PM, after which the market closed at a lower, yet respectable, 121,798.86 points.

 

For reference, the KSE-100 closed at 120,450.87 points on Tuesday, after which the index recorded a growth of 1.12 percent during trading hours on Wednesday, leading to a 1,347.99 point rise. The market displayed a slowdown around 9:34 AM as the KSE-100 hit its intraday trading low of 120,896.13 points.

 

All 17 indexes listed on the exchange remained in the green with the All-share index (ALLSHR) growing by 1.07 percent, which translates into a 801.91 point rise in the index. Unlike the KSE-100, which tracks the performance of the 100 largest and most liquid companies, the ALLSHR index records the performance of all publicly listed companies on the PSX.

 

A number of companies witnessed a rise in share prices, with Invest Capital Investment Bank Limited (ICIBL) and First Credit and Investment Bank Limited (FCIBL) winning big, to the tune of growth rates that sat at 42.55 percent (ICIBL) and 13.68 percent (FCIBL). 

 

However, not every publicly listed stock witnessed an improvement as many companies witnessed sharp declines. Of these declining companies, the one that fared the worst during intra-day trading was ICC Industries Limited (ICCI), which posted a 10.00 percent decline in its position.

 

Recent reports have suggested that the KSE-100 index could cross 165,000 points by December 2025, owing to a drop in interest rates and an improved state of the wider economy. These factors are responsible for creating a business-friendly environment, lending weight to analysts’ claims.