ISLAMABAD, June 13 Reuters Pakistan39;s benchmark share index made its biggest singleday gain in nearly a year to close at a record high, a day after the government unveiled a budget that cheered investors by avoiding an anticipated increase in capital gains tax, despite an ambitious tax revenue target.

The benchmark share index closed up 4.9 at 76,338 points after presentation of the budget, which looks to raise tax revenue of 13 trillion rupees 47 billion for the year starting July 1, up nearly 40 from the current year.

The market was expecting an increase in capital gains tax and so investors had reduced exposure significantly, said Adnan Sheikh, assistant vice president of Pak Kuwait Investment Co.

A record day was expected following the budget and Monday39;s cut of 150 bps in the central bank39;s policy rate, as equities are the best option for the medium term, said Sheikh.

Pakistan39;s international sovereign bonds also rallied with longerdated maturities seeing the largest gains. The 2036 bond added 1.4 cents its biggest gain in more than two months to be bid at just over 77 cents in the dollar, Tradeweb data showed. 

Following a post budget press conference on Thursday, Finance Minister Muhammad Aurangzeb told Reuters that Islamabad plans to raise up to 1 billion through international bonds in the 202526 fiscal year, adding that up to 300 million will be raised through Chinese markets.

Apart from the capital gains tax, analysts say the budget and other…