Pakistan stocks hits record high as investors brace for budget announcement

Pakistan’s benchmark stock index surged to a new all-time high on Monday, both intraday and at close, as investors positioned themselves ahead of the highly anticipated fiscal year 2026 budget announcement later in the day.

“The sustained momentum was driven by optimism surrounding potential budgetary incentives and further supported by improved market liquidity,” an analyst at Ismail Iqbal Securities said.

Key sectors driving the rally included commercial banks, fertilizer, and pharmaceuticals, which collectively added 484 points to the index.

Despite the record close, market activity remained range-bound, with fluctuations within a narrow band as uncertainty over the budget kept investors cautious, according to an analyst at Topline Securities.

KSE-100 index gained 0.32% or 383.44 points to close at 122,024.44 points.

Currency

US dollar eased against PKR in the inter-bank market. Pakistani currency gained 1 paisa to close at 282.21. In the open market USD was trading at PKR 284.45.

Indian Stocks

Indian benchmark indexes ended little changed Tuesday as profit-taking in financial stocks countered gains fueled by optimism over U.S.-China trade negotiations and ongoing policy support from the Reserve Bank of India.

Analysts said valuations remain elevated following the recent rally, making periods of consolidation and intermittent profit-taking likely in the near term.

BSE-100 index gained 0.02% or 5.88 points to close at 26,393.76 points.

DFM General Index gained 0.04% or 2.1 points to close at 5,594.85 points.

Crude Oil

Oil prices rose on Tuesday as investors looked forward to US-China trade talks, hoping they would reduce tensions and boost fuel demand.

The talks continued for a second day in London, with top officials working to ease disputes over tariffs and restrictions on rare earth materials, which threaten global supply chains and economic growth.

Brent crude prices increased by 0.55% to $67.41 per barrel.

Gold Prices

Gold prices went up slightly on Tuesday as investors waited for updates on U.S.-China trade negotiations and key U.S. inflation data expected this week, which could influence the Federal Reserve's decision on interest rates.

Gold saw some support from buyers taking advantage of lower prices, but the rise was not strong. Concerns about government spending and expectations of Fed rate cuts are driving the price recovery.

International gold prices increased 0.11% to close at $ 3,337.16 per ounce. In the local market, gold prices declined PKR 6,100 to 352,300 per tola.