PSX Retreats After Briefly Surpassing 120,000 Mark Amid Budget Concerns

On June 2, 2025, the Pakistan Stock Exchange (PSX) experienced significant volatility, with the benchmark KSE-100 Index briefly surpassing the 120,000-point threshold before closing lower at 118,877.81, a decline of 813.29 points or 0.68% from the previous day. The market’s initial gains were driven by strong performances from companies like Packages Ltd, National Foods Ltd, Meezan Bank, National Bank of Pakistan, and Bank Al-Habib. However, investor sentiment turned bearish due to concerns over proposed tax increases in the upcoming federal budget, including a 2–3% hike on passive income and higher levies on petroleum products. Additional factors such as geopolitical tensions and currency instability further dampened investor confidence. Trading volume decreased by 14.19% to 497.94 million shares, while the total value of traded shares rose by 3.1% to Rs23.45 billion.