Pakistan Stock Exchange (PSX) reached the second day of the budget announcement and reached the highest level in the country’s history.
The 100-index increased by 830 points to reach 77,039 points the first time in the history of trading.
The investors are rallying confidence on the budget policies that are yet to be approved by the parliament amid the PPP objections that they were not included in consultations in the budget perorations.
On Thursday, the Pakistan Stock Exchange (PSX) experienced a significant surge, just a day after the government proposed its budget for FY2024-25. Shares saw a massive gain of over 3,400 points during intraday trade.
The KSE-100 index rose by 2,735.07 points, or 3.75%, reaching 75,579.23 at 12:17 PM, according to the PSX data portal. By the close of trading, the index stood at 76,208.16, marking an increase of 3,410.73 points or 4.69% from the previous close of 72,797.43 points.
The key factors include the government’s decision not to increase the tax on dividends and capital gains for investors.
The market’s positive reaction to the softer changes in capital gains tax (CGT) for tax filers, contrasted sharply with pre-budget concerns.
The measures targeting non-tax filers, as well as some retailers and real estate sectors, were also received positively, though enforceability risks remain.
The market had been under pressure in recent days due to uncertainties over significant tax measures amid IMF guidelines. However, the actual budget dispelled those concerns, leading to overall positive market sentiment.
The PSX’s performance on Thursday underscores investor confidence in the new budget’s measures, setting a hopeful tone for the fiscal year ahead.