Bulls Return to Pakistan Stock Exchange Following Budget Proposal
After the government proposed its budget for FY2024-25, bulls returned to the Pakistan Stock Exchange (PSX) on Thursday with shares surging by over 1,700 points in intraday trade. The KSE-100 index saw a significant increase of 2.35% to reach 74,505.26 points, following the previous close of 72,797.43.
Market experts attributed this rally to key changes in the budget, specifically the decision not to increase taxes on dividends and capital gains for investors. This move was well-received by investors, resulting in a positive market reaction.
Overall, the budgetary measures were seen as positive, easing concerns over potential tax hikes. Analysts are optimistic about the market outlook, especially with the IMF expected to approve the budget aimed at enhancing the documentation of the economy and tightening regulations for non-filers.
Investors welcomed the relief rally, as the market had been anticipating tax increases which did not materialize in the budget. With a primary surplus target set as per IMF requirements, equities are predicted to be a strong option for medium-term investments following recent policy rate cuts.
Additional input from Reuters