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Thursday, November 07, 2024  
04 Jumada Al-Awwal 1446  

PSX briefly crosses 77,000 points for first time in history

Market has seen a continuous buying spree since the budget
Reuters
Reuters

The Pakistan Stock Exchange (PSX) witnessed a continued buying spree on Friday, with the benchmark KSE-100 index reaching an all-time high of over 77,000 points for the first time in history.

By 11:15am, the index was trading at 77,177.62, marking a 1.3% increase or 969.46 points. The index closed at 76,706.77, up by 498.61 or 0.65%, from the previous close.

The surge in the market is attributed to positive investor sentiment following the announcement of the federal budget for 2024-25. Key sectors like commercial banks, fertilizers, oil and gas exploration companies, OMCs, and refineries saw significant buying activity.

Major index-heavy stocks, including PRL, PSO, SNGPL, and OGDC, traded in the green.

This positive momentum follows a strong performance on Thursday, where the KSE-100 index crossed the 76,000 mark for the first time, closing at 76,208.16, a 4.69% increase.

Analysts believe the budget’s positive impact on the market stems from the government’s decision to maintain the current Capital Gains Tax (CGT) treatment, leaving it unchanged from normal tax.

“Investors welcome the tax parity created between PSX and other asset classes,” says Amreen Soorani, head of research at JS Global Capital.

Apart from the capital gains tax, analysts said the budget and other revenue measures were in line with expectations and key to sealing a new International Monetary Fund (IMF) programme.

The government is looking to raise tax revenue of Rs13 trillion ($47 billion) for the year starting July 1, up nearly 40% from the current year.

The country is seeking an estimated loan from the IMF ranging from $6 billion to $8 billion to avert default in an economy growing at the region’s slowest pace.

“The budget is in line with the IMF recommendations, and the market is expecting that we will soon sign a new and bigger programme with the IMF,” said Tahir Abbas, head of research at Arif Habib Limited.

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