Karachi, February 10, 2025 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a remarkable surge of 1,055 points on Monday, fueled by renewed investor confidence following reports that the government might postpone the introduction of a tax package for the real estate sector.
The KSE-100 index closed at an impressive 111,378 points, marking a robust 0.96% increase from last Friday’s closing of 110,323 points. Market analysts attributed the strong recovery in the KSE-100 to expectations that the proposed tax package for the property sector could be deferred, alleviating concerns among stock market investors.
READ MORE: Tax Package for Real Estate Unlikely Before Budget 2025-26
In the preceding week, the KSE-100 index witnessed a significant downturn, shedding nearly 4,000 points in the first three trading sessions. This sharp decline was driven by apprehensions surrounding a comprehensive taxation package for the construction and housing sectors. Investors feared that lucrative tax incentives on property transactions could divert substantial capital away from the stock market, leading to bearish sentiment.
Monday’s session saw vigorous buying activity across key sectors, including power generation, oil marketing companies (OMCs), oil and gas exploration firms, fertilizers, commercial banks, and automobile assemblers. Index-heavyweight stocks such as HUBCO, SHEL, SNGPL, MARI, OGDC, HBL, and UBL closed in the green, contributing to the KSE-100’s upward trajectory.
Market experts noted that several stocks had reached attractive valuations, prompting renewed interest from investors. “With multiple stocks trading at appealing levels, fresh buying has emerged, though market liquidity remains a persistent challenge,” observed Intermarket Securities in a research note.
“The forthcoming International Monetary Fund (IMF) review stands as a crucial milestone, with its outcome likely to influence investor sentiment significantly,” the note added.
Last week, the PSX faced relentless selling pressure, with the KSE-100 plunging by 3,932.79 points on a week-on-week basis, closing at 110,332.94 points. Heavy losses across various sectors resulted in a deep red finish, amplifying investor concerns. However, the renewed optimism surrounding the government’s fiscal policies has provided the market with a much-needed boost, positioning the KSE-100 for potential further gains in the near term.