KARACHI: Pakistan’s key stock index hit an all-time high of 80,000 points on Friday, with data showing the benchmark index posted a growth of nearly 100 percent in a year, as analysts attributed the recent surge to optimistic investors confident Islamabad will extract another bailout package from the International Monetary Fund (IMF).
The benchmark KSE 100 index crossed the key psychological barrier of 80,000 points to hit an all-time high of 80,059.87 points. This is an almost 100 percent increase recorded in the benchmark index since June 21, 2023.
However, following the profit-taking at higher levels— a situation where buyers sell shares at higher prices to gain maximum profit— the index dropped to 78,169 points during trading and closed at 78,810.49 points.
The index figure at the close shows that the benchmark has posted a growth of 96 percent in a year, according to the Pakistan Stock Exchange’s (PSX) data.
“Positive sentiments, led by a tax-laden budget which investors feel will help in getting IMF’s long-term loan, have tossed the index above the 80,000 level which was 40,000 a year back,” Muhammad Sohail, CEO of Topline Securities, told Arab News.
Pakistan’s Finance Minister Muhammad Aurangzeb presented the $67.76 billion federal budget for the fiscal year 2024-25 in parliament on June 12. Analysts expect the budget will play a pivotal role in Pakistan’s negotiations with the IMF to unlock yet another loan from the international lender.
Islamabad has set an ambitious tax revenue generation target of about Rs13 trillion ($46.55 billion) for the year fiscal year 2025 in the budget. The tax collection target has been increased more than 40 percent from the target for the current fiscal year, which ends on June 30.
Pakistan equity investors also celebrated the government’s move to refrain from an anticipated increase in capital gains tax (CGT) and tax on dividend income. In addition, the taxes imposed on the real estate sector will also make the stock market an attractive destination for investment, analysts said.
“Before the budget, there was a rumor in the Pakistan stock market that capital gains tax and tax on dividends is going to be increased,” Shehryar Butt, portfolio manager at Darson Securities said. “But after the budget, those taxes were not imposed. That was positive for the market.”
Butt said the budget presented by the incumbent government seemed to be as per the IMF’s directions and expectations.
“It is very likely that Pakistan will get a longer program of IMF after presentation of the budget and it has also been marked by international rating agencies including Fitch,” Butt noted, adding that global financial institutions are optimistic about Pakistan achieving its revenue collection target.
Analysts hope the stock market will continue to perform strongly and the KSE 100 index will add another 10,000 points in the coming days.
“Factors that would support the bullish sentiments at the stock market in coming days include inflation and the monetary policy easing,” Tahir Abbas, head of research at Arif Habib Limited, said.
Abbas said average annual inflation is expected to be around 12-12.5 percent while interest rates are expected to decline from the current 20.5 percent figure to around 16 percent in a year.
“Based on these factors we expect that the KSE 100 index would hover around the 88,000 level by the end current year,” he said.
Pakistan’s benchmark index posts nearly 100% growth in a year, hits 80,000 barrier
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Pakistan’s benchmark index posts nearly 100% growth in a year, hits 80,000 barrier
- Benchmark KSE 100 index hits all-time high at 80,059.87 level during intraday trading
- Analysts say surge due to investors’ optimism about Pakistan securing another IMF loan
Pakistan says 10 militants killed during counterterror operation in southwest
- Security forces gun down 10 militants belonging to Tehreek-e-Taliban Pakistan outfit, says army’s media wing
- Counterterror offensive takes place as Pakistan faces surging militant attacks in Khyber Pakhtunkhwa, Balochistan
ISLAMABAD: Pakistani security forces killed 10 militants during a sanitizing operation in the southwestern Zhob district, the military’s media wing said on Thursday, amid a surge in militant attacks across the country.
Security forces gunned down eight Tehreek-e-Taliban Pakistan (TTP) militants in Balochistan province’s Zhob district earlier on Tuesday, the Inter-Services Public Relations (ISPR) said.
The forces further carried out a sanitization operation in the same district on Wednesday to hunt down the remaining TTP militants, the ISPR said.
“During the conduct of operation, own forces tracked down khwarij on multiple routes and effectively engaged their locations,” the military’s media wing said.
“After an ensuing fire exchange, ten Indian-sponsored khwarij were sent to hell.”
Pakistan’s military and civilian government frequently use the term “khwarij” to describe the TTP. The army said weapons, ammunition and explosives were recovered from the slain militants who were involved in “terrorist” activities.
The military said sanitization operations were being carried out in the area to locate other missing militants.
The security operations take place as Pakistan witnesses a surge in militancy in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces that border Afghanistan.
Islamabad accuses Afghanistan of allowing the use of its soil and India of backing militant groups for cross-border attacks against Pakistan. Kabul and New Delhi deny this.
Mineral-rich Balochistan has been the site of a low-lying insurgency for the past couple of years. Ethnic Baloch separatist militants accuse the state of depriving the local population of a share in the province’s resources.
Islamabad denies the allegations and says the government is carrying out several development initiatives to uplift the local population in Balochistan.
