Budget 2025-26 triggers strong bull run on PSX

The Pakistan Stock Exchange (PSX) witnessed a historic surge on Wednesday, as investors gave a resounding vote of confidence to the newly announced federal budget for FY2025-26.

The benchmark KSE-100 Index climbed over 1,600 points during early trading, crossing the 123,000 mark for the first time in history.

By 9:40am, the index was recorded at 123,463.86 — a rise of 1,439.42 points or 1.18% — as across-the-board buying lifted sentiment on the first trading day after the budget presentation. The index opened at 123,415.60 with a gain of 1,391.16 points and recorded an intraday high of 123,723.20. The lowest level in the early session stood at 123,290.25. Total volume in the KSE-100 during this period reached 20.8 million shares.

Market sentiment was buoyed by the absence of any major negative surprises in the budget, especially related to taxation. The decision to maintain the capital gains tax at 15% was seen as a positive for equity investors.

The federal budget 2025-26, presented on Tuesday, carries a total outlay of Rs17.573 trillion. It targets GDP growth of 4.2% for the next fiscal year, compared to 2.7% in the outgoing year. The government has set an inflation target of 7.5%, while the fiscal deficit is projected at 3.9% of GDP, down from 5.9%. The primary surplus is forecasted at 2.4%.