June 21, 2024 (MLN): The Pakistan Stock Exchange All-Share market capitalization reached an all-time high level of Rs10.55 trillion during today’s intraday session.
The market capitalization reached a new peak, surpassing its previous high of Rs10.45 trillion set on May 24, 2017, after nearly seven years.
The local equity market is currently experiencing a bullish ride, with significant points added to the index amid strengthened prospects for an International Monetary Fund deal.
The global ratings agency Fitch on Tuesday said that the federal budget 2024-25 strengthens prospects for an IMF deal.
Moreover, Moody's Ratings on Friday said that the budget will likely support Pakistan’s ongoing negotiations with the IMF for a new Extended Fund Facility (EFF) program.
This has bolstered investors’ confidence, resulting in a buying spree by the bulls.
Investors had anticipated a significant increase in Capital Gains Tax (CGT) rates, which triggered a panic situation and heavy sell-off in the market.
However, the budget came as a relief for CGT payers as the government kept the capital gains tax rate unchanged, ending the uncertainty.
The gains are further attributed to the central bank's decision to initiate monetary easing after a four-year period.
The State Bank of Pakistan (SBP) lowered its key policy rate by 150 basis points to 20.5% on June 10, a bigger margin than expected by market analysts.
