The Pakistan Stock Exchange (PSX) witnessed the highest single-day gain on Thursday with the benchmark KSE-100 index rising more than 3,400 points following the budget for fiscal year 2024-25 (FY25).
The KSE100 crossed 76k and closed at an all-time high level of 76,208.16 after going up by 3,410.73 points or 4.7 percent over the previous day.
Today’s increase was the biggest day-over-day increase, the previous biggest single day increase was witnessed on July 03, 2024, when the index gained 2,446 points.
It is pertinent to mention here that amidst fear over change in treatment of income from Capital gain and dividend to normal tax, market lost 4 percent or 3,186 points in last 12 sessions.
However, in budget announcement, the government did not impose such measure, thus providing a sigh of relief to individual investors controlling over 80 percent of the daily trading activity (value).
In a report earlier today, brokerage house Topline Securities said it believes that subject to successful approval of this budget in compliance with IMF guidelines, market PE will rerate from current 3.4x to historic forward PE of 6.93x linearly in 3 years’ time.
It further said that forward PE by Jun 2025 will rise to 4.6x, taking our index target for Jun 2025 to 106,000, providing return of 46 percent. In line with this, our Index target for December 2024 is 87,000, providing return of 20 percent.
The post PSX Posts Biggest Single-Day Gain, Surges Over 3,400 Points on Budget appeared first on ProPakistani.
