Pakistan Stock Exchange hits record high post-budget session

The Pakistan Stock Exchange (PSX) witnessed a remarkable start in the post-budget session, as the KSE-100 index soared to a new high of 76,208.16, reflecting a substantial increase of 4.69%. This surge, the most significant in a single session in terms of points, was fueled by extensive buying activities across various sectors, including automobile, cement, banks, engineering, and oil and gas companies.

The recent announcement of the federal budget for 2024-25 aimed at achieving a modest 3.6% growth in the upcoming fiscal year. The market responded positively to the government's decision to maintain the Capital Gain Tax (CGT) treatment and retain dividend tax rates unchanged for both filers and non-filers.

Sectors like cement and engineering benefited from the government's increased allocation to the Public Sector Development Programme (PSDP). However, textile stocks faced challenges due to proposed tax adjustments for exporters. Despite the rise in Federal Excise Duty (FED) on cement, the sector remained optimistic due to the boost from the higher PSDP allocation.

On a global scale, Asian equities demonstrated strength, with markets in Taiwan and Hong Kong experiencing significant gains. The US market also performed well, achieving record highs in the S&P 500 and Nasdaq, which influenced positive futures in Japan and the US.

Locally, the Pakistani rupee appreciated slightly against the US dollar, while trading volume and share value on the all-share index witnessed notable increases. Notable leaders in trading volume included K-Electric Ltd, Fauji Cement, and WorldCall Telecom.

The post-budget session at the Pakistan Stock Exchange showcased a strong performance, driven by positive market sentiments and sector-specific developments. Investors remain optimistic about the future outlook, supported by both local and global market trends. As the economy continues to evolve, monitoring these key indicators will be crucial for stakeholders and investors alike.