Bulls stormed back to the Pakistan Stock Exchange (PSX) on Thursday, with shares surging over 3,400 points in intraday trade following the government’s proposal of the budget for the fiscal year 2024-25.
The KSE-100 index soared by 4.69% to close at 76,208.16, marking a record high in a single day. Investors welcomed the absence of tax increases on dividends and capital gains, leading to positive reactions in the market.
Industry experts like Mohammed Sohail and Raza Jafri expressed optimism regarding the market’s response to the budget, expecting the IMF to approve the economic plan. The budget focused on enhancing economic documentation and providing support to key industries like construction and steel.
Market analysts believe that the recent budget and policy rate cuts could lead to a further rally in equities, making them a favorable option for medium-term investments. Overall, the outlook for the stock market has significantly improved, drawing positive sentiments from investors.
Additional input from Reuters