PSX briefly exceeds 77,000 points for the first time in history

The Pakistan Stock Exchange (PSX) witnessed a sustained buying spree on Friday with the benchmark KSE-100 index hitting an all-time high of over 77,000 points for the first time in history.

At 11:15 a.m., the index was trading at 77,177.62, up 1.3% or 969.46 points. The index closed at 76,706.77, up 498.61 or 0.65% from the previous close.

The market’s surge is attributed to positive investor sentiment following the announcement of the 2024-2025 federal budget. Key sectors such as commercial banks, fertilizers, oil and gas exploration companies, OMCs and refineries saw significant buying activity.

Major index-heavy stocks including PRL, PSO, SNGPL and OGDC traded in the green.

This positive momentum follows a strong performance on Thursday when the KSE-100 index breached the 76,000 mark for the first time, closing at 76,208.16, up 4.69%.

Analysts believe the positive impact of the Budget on the market stems from the government’s decision to maintain the current treatment of capital gains tax (CGT), leaving it unchanged from normal tax.

“Investors are happy with the tax parity between PSX and other asset classes,” said Amreen Soorani, head of research at JS Global Capital.

Apart from the capital gains tax, analysts said the budget and other revenue measures were in line with expectations and were key to sealing a new International Monetary Fund (IMF) programme.

The government aims to increase tax revenues of Rs13 trillion ($47 billion) for the year starting July 1, almost 40% more than the current year.

The country is seeking an estimated IMF loan ranging from $6 billion to $8 billion to avoid defaults in an economy growing at the slowest pace in the region.

“The budget is in line with the IMF recommendations and the market expects that we will soon sign a new and bigger program with the IMF,” said Tahir Abbas, head of research at Arif Habib Limited.