PkRevenue.com – The benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) experienced a significant decline of 356 points on Thursday, extending losses amidst apprehensions surrounding potential taxation measures in the upcoming budget for the fiscal year 2024-25.
The KSE-100 index closed at 73,863 points, down from the previous day’s closing of 74,219 points, marking a 0.48% decrease. Maaz Mulla, Senior Trader at Topline Securities Limited, reported that the market initially opened on a positive note, with the index reaching an intraday high of 74,593 points, up by 373 points or 0.50%, in the morning session.
However, the market sentiment quickly turned bearish as concerns over potential increases in capital gains tax (CGT) and dividend tax in the upcoming budget began to weigh on investor confidence. Despite the early gains, the KSE-100 index failed to sustain the 74,000 level, facing a selling spree that drove it into negative territory.
The day’s trading activity saw a significant amount of selling pressure, particularly amidst rumors of higher taxes on dividends, capital gains, and interest income in the upcoming budget. This uncertainty prompted investors to offload their positions, resulting in a notable decline in the index.
Several key stocks contributed to the downturn in the KSE-100 index, including Fauji Fertilizer Company (FFC), Oil and Gas Development Company Limited (OGDC), Mari Petroleum Company Limited (MARI), MCB Bank Limited (MCB), and Pakistan State Oil (PSO), collectively subtracting 136 points from the index. Conversely, Bank Alfalah (BAFL), Systems Limited (SYS), Lucky Cement Limited (LUCK), Engro Corporation Limited (ENGRO), and Mughal Iron and Steel Industries Limited (MTL) managed to add 65 points to the index.
Overall, trading activity remained brisk, with over 351 million shares exchanged, amounting to a total value of Rs12.2 billion. WorldCall Telecom Limited (WTL) led the volume chart with over 17.6 million shares traded.
As investors await further clarity on the government’s taxation policies and budgetary measures, market volatility is expected to persist in the coming sessions. The outcome of the budget announcement will likely have a significant impact on investor sentiment and market direction in the near term.
