PSX fluctuates, as KSE-100 index retreats after crossing 75,000 markBreaking

May 16, 2024

The Pakistan Stock Exchange (PSX) witnessed a remarkable boom today as the KSE-100 index soared, crossing the coveted 75,000 mark again. An impressive increase of 339 points propelled the index to trade at 75,003 points, signifying a significant uptick in investor confidence and market sentiment. However, that boom did not last too long as the index witnessed a slump of 138 points and traded at 74,525 points. This surge comes amidst a flurry of positive developments in the economic landscape, reflecting growing optimism among investors. The bullish trend underscores the resilience of the Pakistani stock market, despite ongoing challenges and uncertainties. Trading on Thursday started with the KSE-100 index seeing a bullish trend, as it gained 303 points to trade at 74,967. An unprecedented boom was witnessed in the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark KSE-100 index crossed the monumental threshold of 75,000 points. Investors celebrated as the index surged by a remarkable 563 points, reaching an impressive level of 75,094 points during trading sessions. Market analysts attribute this remarkable growth to various factors, including robust corporate earnings, favourable government policies, and an improving economic outlook.

The influx of foreign investment and renewed interest from domestic investors further contributed to the buoyant atmosphere in the stock exchange. As negotiations between Pakistan and the International Monetary Fund (IMF) continue, discussions have turned to proposals regarding the upcoming budget, with a focus on cracking down on unregistered traders and increasing taxes on non-filers' cash transactions. Sources close to the negotiations reveal that the upcoming budget will include strict measures against unregistered traders, aiming to bring them into the tax net. Notices will reportedly be sent to businesses not registered through the 'Tajir Dost' app, and penalties under Section 182 of the Income Tax Ordinance are anticipated for non-compliance. Unregistered businesses could face fines of up to Rs10,000, as per the sources. Moreover, in a bid to curb tax evasion and enhance revenue collection, the budget is expected to propose increased taxes on cash withdrawals by non-filers. Currently, non-filers are subjected to a 0.6% advance tax on bank withdrawals exceeding Rs50,000. The new proposal suggests raising this tax rate to 0.9%, aiming to collect over Rs15 billion in advance tax from non-filers' cash withdrawals.

Credit: Independent News Pakistan