The Pakistan Stock Exchange (PSX) surged to a historic peak on Tuesday as investor confidence strengthened in anticipation of the upcoming federal budget. The benchmark KSE-100 index gained over 900 points during intraday trading, reflecting widespread market optimism.
Following an extended break for Eid, trading resumed on a strong note with the KSE-100 index hitting 122,161.81 by 11:30am — an increase of 520.81 points or 0.43%. The momentum continued throughout the session, pushing the index to an all-time high of 122,558 points, marking a new milestone in PSX history.
Read more: PSX Smashes Past 122,000 Mark as Investor Confidence Soars
This bullish trend was fueled by heavy buying in sectors like commercial banking, fertilisers, oil and gas exploration, and oil refining. Leading contributors to the index’s gains included Pakistan Refinery Limited (PRL), Wafi Energy, Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), as well as top banks such as HBL, MCB, and Meezan Bank (MEBL).
Market analysts linked the rally to positive expectations surrounding the fiscal year 2025–26 federal budget, due to be presented later in the day. Investors are closely watching for corporate-friendly policies, particularly related to taxes and development spending.
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, is set to present the Rs17.6 trillion budget in the National Assembly. The Finance Bill 2024 will also be introduced in the Senate, as required under Article 73 of the Constitution.
A senior analyst from a Karachi-based brokerage noted that the market rally reflects hopes of economic support in the budget and continued engagement with the International Monetary Fund (IMF), which have both contributed to the positive sentiment.
The broader market has maintained an upward trajectory in recent weeks. Last week, the KSE-100 index rose by 1,950 points (1.6%), ending Thursday’s session at 121,641 points, up from 119,691 the previous week — despite limited trading due to the Eid break.
Global cues also supported the rally. Asian markets gained for a second straight day amid easing trade tensions between the US and China. Renewed negotiations in London and encouraging comments from US President Donald Trump helped lift investor sentiment worldwide.
The MSCI Asia-Pacific index (excluding Japan) climbed 0.5%, while futures for the Nasdaq and S&P 500 rose by 0.62% and 0.43%, respectively. European markets also edged higher, with EUROSTOXX 50 and FTSE futures up around 0.1%.
