The Pakistan Stock Exchange (PSX) gained almost 1,000 points during intraday trading on Friday, breaking above the 77,000 barrier and setting new records.
The benchmark KSE-100 increased by 1,005.15 or 1.32% from yesterday’s finish of 76,208.16 points to an all-time high of 77,213.31.
Speaking to local media, Intermarket Securities Director of Research Saad Ali stated that the market had quickly recovered following the release of the budget 2024–25 because the anticipated rise in capital gains tax (CGT) had not materialized.
He said that the market’s bullish reaction is partly due to the hopes of a resurgence of discussions with the International Monetary Fund (IMF) for a new program.
The previous day saw an unparalleled massive jump of 3,410.73 points, or 4.69%, as the stock market hit an all-time high of 76,208.16 points.
According to Assistant Vice President Adnan Sheikh of Pak Kuwait Investment Co., “the market had anticipated an increase in capital gains tax and so traders had reduced exposure significantly,” as reported by Reuters.
A moderate 3.6% growth rate is the budget’s goal, which is considered a careful balancing act to appease the IMF while addressing the country’s budgetary issues with higher taxes.
Its goal is to make a stronger case for a fresh rescue agreement with the IMF, as Pakistan is looking for a loan of between $6 billion and $8 billion to avoid default in an economy that is expanding at the slowest rate in the region.