Karachi: The Pakistan Stock Exchange (PSX) on Friday gained over 1,000 points to cross the 77,000 mark to reach an all-time high.
The benchmark KSE-100 hit a high of 77,213.31, up 1,005.15 or 1.32% from yesterday’s close of 76,208.16.
Saad Ali, director of research at Intermarket Securities, told Geo.tv that the market has rallied sharply since the announcement of the budget for 2024-25 as a fear of increasing the capital gains tax (CGT) has not risen.
In addition, the expectation for the resumption of negotiations for a new program with the International Monetary Fund (IMF) has been renewed, which caused a positive market reaction.
The stock hit a high of 76,208.16 points a day earlier, marking an unprecedented jump of 3,410.73 points or 4.69%.
Adnan Sheikh, assistant vice president of Pak Kuwait Investment Co, told Reuters: “The market is expecting an increase in income tax and investors have significantly reduced their exposure.”
The budget targets an average growth of 3.6%, a move seen as a good balance to meet GDP while addressing the country’s fiscal problems through taxation.
The new bailout deal from HPG is set to strengthen the case as Pakistan seeks between $6 billion and $8 billion in loans to avoid default in the region’s slowest economy.
