Pakistan stocks hits record high ahead of FY26 budget announcement

Pakistan’s benchmark stock index surged to a new all-time high Tuesday, driven by investor optimism ahead of the FY26 budget and expectations of favorable fiscal measures, analysts said.

The KSE-100 index closed at a record high, surpassing previous intraday and closing peaks, as sectors like commercial banks, technology, communication, and oil & gas exploration led the rally. Together, these sectors contributed 941 points to the index’s gains.

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

Ahsan Mehanti of Arif Habib Corp noted that the pre-budget rally was fueled by speculation over government efforts to reduce sales tax and provide provincial power tariff relief.

Meanwhile, Topline Securities attributed the bullish trend to strong buying activity from local and institutional investors, extending gains from the previous session.

KSE-100 index gained 1.12% or 1,347.99 points to close at 121,798.87 points.

Currency

US dollar gained against PKR in the inter-bank market. Pakistani currency shed 10 paisas to close at 282.22. In the open market USD was trading at PKR 284.45.

Indian Stocks

Indian stock markets ended Wednesday's trading with small gains, helped by positive global trends. Investors are optimistic about a possible India-US trade deal, as hinted by Trump's commerce secretary. Strong US stock performance also boosted India's stock market.

Now, investors are looking forward to more news on the trade deal talks and the Reserve Bank of India's policy decision on Friday.

BSE-100 index gained 0.3% or 77.17 points to close at 25,834.79 points.

DFM General Index gained 0.25% or 14.08 points to close at 5,535.93 points.

Crude Oil

Oil prices stayed mostly the same on Wednesday. This was because of trade tensions around the world and a planned increase in production by OPEC+, a group of oil-producing countries. OPEC+ plans to add 411,000 barrels per day in July, which put pressure on the market.

However, a drop in oil supply from Canada helped balance things out. Wildfires reduced Canada's production by about 344,000 barrels per day.

On Tuesday, oil prices rose by about 2%, reaching their highest level in two weeks. This increase was due to worries about supply problems and expectations that Iran would reject a U.S. proposal for a nuclear deal, which could have helped lift sanctions on the country.

Brent crude prices increased by 0.02% to $65.64 per barrel.

Gold Prices

Gold prices stayed almost the same on Wednesday morning. Investors were worried about U.S. trade taxes (tariffs) and slower global economic growth.

These concerns grew after the OECD (a group that studies economies) lowered its predictions for worldwide growth on Tuesday.

International gold prices decreased 0.19% to close at $ 3,346.86 per ounce. In the local market, gold prices remained flat at 354,100 per tola.