Leading analysts termed the budget 'a balanced and investors friendly', saying that exemption on capital gains tax on listed shares for further two years and keeping the existing tax regime at share market unchanged will increase trading activity at the share market.
An increase in Public Sector Development Programme (PSDP) will be a positive sign for cement sector, however the increase in excise duty on cement will increase cement prices, they said, adding increase in subsidy for fertiliser will be beneficial for industry and farmer as well.
Ovais Siddiqui, Head of International Sales First Capital & Equities said that overall it is a balanced budget positive for economy and stock market. An increase in allocation of Public Sector Development Programme (PSDP) will be positive for cement sector, however an increase of excise duty will increase the cement prices.
An extension on capital gains tax for further two year was according to the expectations of the investors, he said. Increase in salary and pension and announcement of Benazir Cards were positive sign, he added.
Faisal Shaji, Head of Management at Khoja's Capital Management said that the budget is good for investment and business community. Various relief and increase in salaries will boost moral of the people, he said. The international financial institutions will definitely appreciate the budget. However, he said that DAP subsidy was less then expectations. It should be around Rs 1200 to Rs 1300. Many incentives were announced for manufacturing sector.
Saad Bin Ahmed, Head of Resreach Capital One Equities, said that overall it was a balanced budget. Increase in fertiliser subsidy was a positive announcement and the sector will attract more investment. The cement prices will increase by Rs 10 per bag after increase in excise duty. The increase in NSS rates could affect stock market negatively as the investment could shift from share market to NSS schemes, he opined.
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