PSX witnesses largest single-day jump with gain of 3,410 points

Pakistan’s benchmark stock index (PSX), the KSE-100, experienced an unprecedented surge on Thursday, marking its most significant gain in a year.

This rally follows the government’s announcement of the 2024-25 budget, which alleviated concerns regarding potential increases in capital gains and dividend taxes.

The KSE-100 index soared by 3,410.7 points, or 4.7 per cent, reaching 76,208 points. This increase represents the largest single-day jump in point terms.

In the index’s history and the highest percentage rise since the International Monetary Fund (IMF) bailout package was introduced last year.

Investor sentiment remained overwhelmingly positive throughout the trading session. The index hit an intraday high of 76,338.15 points, an increase of 3,540.72 points, and a low of 73,329.80 points, still up by 532.37 points.

By the end of the day, the total volume traded on the KSE-100 index was 344.98 million shares.

Out of the 100 companies listed on the index, 87 saw their shares close higher, nine experienced declines, and four remained unchanged.

The government’s decision to set the capital gains tax at a flat rate of 15 per cent for filers on the sale of securities acquired on or after July 1, 2024, was a significant factor contributing to the market’s positive performance.

For non-filers, capital gains will be taxed at normal rates, with a minimum rate of 15 per cent and a maximum rate of 45 per cent.

This decisive move by the government has been well-received by investors, bringing clarity and stability to the market and fostering an environment of confidence and growth.