The Pakistan Stock Exchange (PSX) soared to new heights on Friday, crossing the 77,000 mark by gaining more than 1,000 points during intraday trading.
The benchmark KSE-100 index reached an all-time high of 77,213.31, up by 1,005.15 points or 1.32% from the previous day’s close of 76,208.16 points.
Intermarket Securities Director of Research Saad Ali told Geo.tv that the market has rebounded sharply since the announcement of the 2024-25 budget, as the feared increase in Capital Gains Tax (CGT) did not materialize.
Additionally, expectations of a revival of talks with the International Monetary Fund (IMF) for a new program have resurfaced, contributing to the positive market reaction, he added.
A day earlier, the stock market had reached an all-time high of 76,208.16 points, marking an unprecedented jump of 3,410.73 points or 4.69%.
“The market was expecting an increase in capital gains tax, so investors had significantly reduced their exposure,” Adnan Sheikh, assistant vice president of Pak Kuwait Investment Co, told Reuters.
The budget aims for a modest 3.6% growth, a move seen as a delicate balancing act to satisfy the IMF while addressing the nation’s fiscal challenges with heightened taxation.
It’s designed to strengthen the case for a new bailout deal from the IMF, as Pakistan seeks an estimated loan ranging from $6 billion to $8 billion to avert default in an economy growing at the region’s slowest pace.
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