A day after biggest single-day gains, PSX crosses 77,000 to hit all-time high
The Pakistan Stock Exchange (PSX) on Friday gained more than 1,000 points to hit an all-time high of 77,000, just a day after the trading floor witnessed the biggest single-day gains.
The KSE-100 index gained 1,097.12 points, or 1.44 per cent, to stand at 77,305.28 at 11:04am from the previous close of 76,208.16, the PSX data portal showed.
Raza Jafri, chief executive of EFG Hermes Pakistan, said, “The feel-good factor post the budget continues, driven by improving liquidity with local institutions as the commencement of monetary easing sees rotation into equities.”
Yousuf M Farooq, director research at Chase Securities attributed the bullish momentum to “reduced uncertainty and increased buying by mutual funds, driven by conversions from fixed income to equity funds”.
“We believe that as interest rates gradually decline, stock market valuations will continue to rerate upwards,” he added.
On Thursday, the benchmark index gained more than 3,400 points in intraday trade, which came a day after the government unveiled the federal budget for the next fiscal year.
The budget cheered investors by avoiding an anticipated increase in capital gains tax, despite an ambitious tax revenue target.
Mohammed Sohail, chief executive of Topline Securities, had attributed the upward trajectory to “no increase in tax on dividend and capital gain [tax] (CGT) for investors in the new budget”.
