PSX's push to close above 77,000 mark dashed by profit-selling

Market rebounded sharply since budget as feared increase in CGT did not come through, says analyst

By Web Desk
June 14, 2024
A woman takes pictures of the electronic board displaying data at the Pakistan Stock Exchange in Karachi, on December 21, 2022. — PPI

KARACHI: Stocks on Friday extended the post-budget rally to cross the 77,000 points mark, but eleventh-hour exits pared half of intraday gains, traders said, as investors harvested profits in an overbought market that gained a staggering 4.69% a day after the tabling of Finance Bill FY25.

The benchmark KSE-100 shares index gained 498.61 points or 0.65% to close at a record 76,706.7 points as compared to Thursday's close of 76,208.16 points.


It gained1,005.15 or 1.32% to reach 77,213.31 in the intraday trade.

Intermarket Securities Director of Research Saad Ali, while speaking, said that the market has rebounded sharply since the announcement of the budget 2024-25 as the feared increase in Capital Gains Tax (CGT) did not come through.

Moreover, the expectations of a revival of talks with the IMF for a new programme have resurfaced which is attributed to the market reacting positively, he added.

A day earlier, the stock market reached an all-time high of 76,208.16 points, showing an unprecedented giant leap of 3,410.73 points or 4.69%.

The budget aims for a modest 3.6% growth, a move seen as a delicate balancing act to satisfy the IMF while addressing the nation's fiscal challenges with heightened taxation.

It's been designed to strengthen the case for a new bailout deal from the IMF, as Pakistan seeks an estimated loan ranging from $6 billion to $8 billion, to avert default in an economy growing at the region's slowest pace.