ISLAMABAD (PEN) : On Friday, the Pakistan Stock Exchange (PSX) witnessed a remarkable surge, with the KSE-100 index soaring by over 1,000 points in intraday trade, reaching an unprecedented high of 77,000. This surge occurred just a day after the trading floor experienced its most significant single-day gains.
According to data from the PSX portal, the KSE-100 index rose by 1,097.12 points, equivalent to 1.44 percent, reaching 77,305.28 at 11:04 am, up from the previous closing figure of 76,208.16.
Raza Jafri, the Chief Executive of EFG Hermes Pakistan, attributed the positive sentiment to the aftermath of the budget announcement, highlighting the improved liquidity among local institutions. He noted a shift towards equities due to the onset of monetary easing.
Yousuf M Farooq, Director of Research at Chase Securities, linked the bullish trend to reduced uncertainty and increased buying activity by mutual funds, especially as funds transition from fixed income to equity.
Farooq also expressed optimism, suggesting that as interest rates decline gradually, the stock market’s valuation is expected to continue its upward trend.
The surge in the benchmark index on Thursday, gaining over 3,400 points in intraday trade, occurred shortly after the unveiling of the federal budget for the upcoming fiscal year. Investors were particularly pleased by the absence of an anticipated increase in capital gains tax, despite the government setting ambitious tax revenue targets.
Mohammed Sohail, the Chief Executive of Topline Securities, credited the market’s upward trajectory to the absence of tax hikes on dividends and capital gains for investors outlined in the new budget.
