The Pakistan Stock Exchange (PSX) soared to an all-time high on Tuesday as investor sentiment turned bullish ahead of the federal budget presentation, with the benchmark KSE-100 index surging more than 900 points during intraday trade.

Resuming activity after the extended Eid holidays, the market opened on a strong footing and maintained upward momentum throughout the day. At 11:30am, the KSE-100 index was seen trading at 122,161.81 — up 520.81 points or 0.43 per cent. It later climbed to a record 122,558 points, setting a new benchmark in the bourse’s history.

The rally was driven by robust buying interest in key sectors including commercial banking, fertilisers, oil and gas exploration, and refining. Major index contributors such as Pakistan Refinery Limited (PRL), Wafi Energy, Mari Petroleum (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), HBL, MCB, and Meezan Bank (MEBL) all traded in the green, reinforcing positive sentiment across the board.

Analysts attributed the bullish trend to growing anticipation surrounding the upcoming budget for fiscal year 2025–26, which is set to be presented later today. Investors are particularly focused on fiscal measures that could impact the corporate sector, especially taxation policies and development expenditure.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb is scheduled to unveil the federal budget — estimated at Rs17.6 trillion — in the National Assembly. The finance minister will also lay the Finance Bill 2024 in the Senate, in accordance with Article 73 of the Constitution.

“The market has responded favourably to expectations that the upcoming budget will support economic recovery, while continued discussions with the International Monetary Fund (IMF) are also helping lift sentiment,” said a senior analyst at a Karachi-based brokerage firm.

The broader market has been on an upward trajectory in recent weeks. During the previous trading week, the PSX added 1,950 points — or 1.6pc — as the benchmark index settled at 121,641 points on Thursday, up from 119,691 points at the end of the preceding week. However, only four sessions were held due to the Eid holiday on June 6.

The rally also coincides with improved global market sentiment. Asian equities advanced for the second consecutive day amid easing trade tensions between the United States and China. Talks between officials from both countries resumed in London on Tuesday, with US President Donald Trump expressing optimism about progress.

The MSCI Asia-Pacific index (excluding Japan) climbed 0.5pc, while Nasdaq and S&P 500 futures were up 0.62pc and 0.43pc, respectively. Meanwhile, EUROSTOXX 50 and FTSE futures edged about 0.1pc higher.