KARACHI – Bulls maintained their grip on the stocks on Wednesday as the federal government has reiterated its commitment to promote sustainable and inclusive economic growth in federal budget 2025-26.
The KSE-100 crossed the 124,000 barrier for first time after it registered significant gains as the investors responded to the budget proposal in a positive way. During intraday trading, it gained 1,977 points to reach historic high of 124,002 points as compared to previous close of 122,024.44 points.
According to Topline Securities, several measures announced by the government in the budget has put a positive impact on the stock market.
It said contrary to expectations of some changes in tax rates on passive income sources, the government has kept the CGT and dividend rates unchanged. We believe, this is positive for market.
Similarly, there has been no change in the treatment of the dividend and capital gain, which is also positive for the market, it added.
The budget aims to target primary surplus of 2.4% of GDP, in line with IMF guidelines. “We believe, this will also be taken as positive as primary surplus target is one of the Quantitative Performance Criteria in IMF program”.
“Other measures which will contribute positively to market performance are (1) removal of exemptions granted to FATA/PATA region, and (2) decrease in super tax,” read its report.
This is a developing story…
