The share prices at the Pakistan Stock Exchange (PSX) rallied on Thursday with the stocks surging by over 3,400 points a day after the announcement of the federal budget, reported 24NewsHD TV channel.

The benchmark KSE-100 index soared by 3,410.13 points or 4.48 percent to 76208,16 points from the previous close of 72,797.43.

Experts believed the upward trajectory was due to no increase in tax on dividends and capital gain [tax] (CGT) for investors in the new federal budget. The market clearly reacted positively to the soft changes to CGT for tax filers, in sharp contrast to the fears in the run-up to the budget, they added.

On Wednesday, the KSE-100 Index had increased by 207.94 points or 0.29 percent and closed at 72,797.43 points. The index hit 73,169.00 points intraday high and 72,464.24 points intraday low.

Trading activity however remained low as daily volumes on the ready counter decreased to 293.083 million shares as compared to 372.538 million shares traded on Tuesday. The daily traded value on the ready counter declined to Rs10.541 billion against previous session’s Rs11.650 billion.

Foreign investors however remained on the selling side and withdrew $2.379 million from the local equity market. The market capitalization increased by Rs 29 billion to Rs 9.783 trillion. Out of total 435 active scrips, 232 closed in positive and 130 in negative while the value of 73 stocks remained unchanged.

K-Electric was the volume leader with 28.444 million shares and gained Rs 0.14 to close at Rs 4.64 followed by PIA Holding Company that increased by Rs 0.76 to close at Rs 12.81 with 27.442 million shares. WorldCall Telecom closed at the previous session’s closing level of Rs 1.29 without any change with 20.518 million shares.

Pakistan Engineering Company and Sapphire Textile Mills were the gainers increasing by Rs 49.85 and Rs 24.00, respectively to close at Rs 689.95 and Rs 1,324.00 while Unilever Pakistan Foods and PIA Holding Company Limited B were the top losers declining by Rs 75.00 and Rs 34.43, respectively to close at Rs 18,050.00 and Rs 511.81.

An analyst at Topline Securities said that Pakistan equities began the day positively, with the KSE-100 Index reaching an intraday high of 73,169 points (plus 579 points; up 0.80 percent) and intraday low of 72,464 (minus 125 points; down by 0.17 percent) to close at 72,797 level (up by 207 points).

Reporter Ayaz Rana