The Pakistan Stock Exchange (PSX) demonstrated significant investor confidence on Tuesday, as the benchmark KSE-100 index surged by more than 800 points. This robust performance in the first trading session after the Eid holidays reflects a market brimming with anticipation ahead of the federal budget announcement for the fiscal year 2025-26. By midday, the index had climbed to 122,450.11, marking a substantial gain of 809.11 points, or 0.67 percent.
The broad-based rally was fueled by strong buying activity across several key sectors of the economy. Commercial banks, fertilizer companies, and oil and gas exploration firms saw notable interest from investors. Additionally, oil marketing companies and refineries experienced a positive trading session. Index-heavy stocks, which often dictate the market’s direction, were instrumental in the upward trend. Major players such as Pakistan Refinery Limited (PRL), Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields (POL), Habib Bank Limited (HBL), MCB Bank, and Meezan Bank all traded in the green, signaling widespread optimism.
This market enthusiasm is directly linked to the imminent unveiling of the federal budget. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, is scheduled to present the approximately Rs17.6 trillion budget in the National Assembly. This fiscal plan is highly anticipated as it is expected to lay out the government’s economic priorities, revenue generation strategies, and expenditure plans for the coming year. Following its presentation in the National Assembly for debate and approval, the accompanying Finance Bill 2024 will also be laid before the Senate, in accordance with constitutional requirements.
The positive sentiment is not a new phenomenon. The market had already concluded the previous week on a high note, with the KSE-100 index gaining 1,950 points to close at 121,641. That rally was largely driven by growing optimism regarding a potential new program with the International Monetary Fund (IMF), which is seen as crucial for the nation’s economic stability. The consistent positive performance suggests that investors are hopeful about the government’s policy direction, expecting measures that could foster a more favorable business environment.
Adding to the positive domestic mood is a relatively stable international market landscape. Global stocks have been generally buoyant, with traders keeping a close watch on the ongoing trade negotiations between the United States and China. Tentative signs of easing tensions between the world’s two largest economies have helped to create a favorable backdrop for equities worldwide. Asian markets saw gains, extending a positive start to the week, which has contributed to a risk-on sentiment globally. This international context, combined with specific domestic factors, has created a fertile ground for the current rally at the PSX as stakeholders await the fiscal roadmap for Pakistan’s economy.