The Pakistan Stock Exchange (PSX) opened on an overwhelmingly positive note in the post-budget session as the benchmark KSE-100 index crossed the 76,000 level to settle at a new record high on Thursday.
At close, the benchmark index settled at 76,208.16, an increase of 3,410.73 points or 4.69%.
This is the highest points gain in a single session, said Arif Habib Limited (AHL) in a note.
Across-the-board buying was witnessed among key sectors including automobile assemblers, cement, commercial banks, engineering, oil and gas marketing companies, OMCs and refinery.
On Wednesday, Finance Minister Muhammad Aurangzeb announced Pakistan’s federal budget 2024-25, targeting a modest 3.6% growth for the coming fiscal year, as Islamabad looked to appease the International Monetary Fund (IMF) and balance its burgeoning books with higher taxation.
Analysts said the budget FY25 is overall positive for the market as the government has not changed the treatment of Capital Gain Tax (CGT) to normal tax.
“Overall, the budgetary measures are positive in a sense that the government has shown intent to bring tax reforms, especially taking stringent measures against non-filers,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told media.
Moreover, the government has also proposed no change in tax rates for dividends income for both filers and non-filers.
“This is positive for market as there were some news reports suggesting tax on dividend income will go up,” said Topline Securities in a note.
Cement and engineering stocks reacted positively to the increase in Public Sector Development Programme (PSDP) by the government.
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