Stocks rally on growing optimism for IMF deal

The stock market extended an overnight bull run on Monday, the first day of the new fiscal year, despite trade and industry’s strong reservations about the tax-laden budget. However, the equity investors celebrated the tax status quo on dividends and income, believing the budget’s approval has paved the way for smooth negotiations to secure a new IMF loan, which is crucial to avoid a default-like situation. Topline Securities Ltd said the Pakistani stock market began trading positively but witnessed profit-taking in the session’s late hours at the day’s high level, trimming the early gains due to a spike in inflation and a rise in petrol prices.