Karachi, March 12, 2024 – The Pakistan stocks witnessed a significant downturn on Tuesday, shedding 953 points as reports circulated about potential new tax measures by the government.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) concluded the day at 64,802 points, marking a notable decline from the previous day’s closing of 65,755 points.
Analysts at Topline Securities Limited reported that Pakistan stocks started the day on a positive note, with the KSE-100 index reaching an intraday high at 65,860 points, reflecting a gain of 104 points or 0.16 percent in the morning session. However, this optimism was short-lived, as profit-taking ensued and transformed into a widespread selling spree across the market. Consequently, the benchmark index failed to hold the 65,000 points level and closed the day at 64,802 points, reflecting a loss of 953 points or 1.45 percent.
The sell-off trend is attributed to concerns related to the upcoming monetary policy announcement scheduled for Monday, March 18, 2024, and the anticipation of potential tax impositions following the government’s discussions for a new International Monetary Fund (IMF) program. Investors and market participants reacted swiftly to these uncertainties, leading to a negative impact on the stock market.
Key sectors such as Fertilizer, Exploration & Production (E&P), Power, and Fertilizer played a significant role in contributing negatively to the index. Companies such as DAWH, OGDC, PPL, HUBC, and ENGRO collectively lost 341 points, further adding to the overall market decline.
The heightened selling pressure has been exacerbated by the market’s cautious stance as investors wait for clarity on the government’s fiscal policies and the potential impact on corporate earnings. The uncertainty surrounding the upcoming IMF program and the specter of additional taxes have created a challenging environment for investors, prompting many to reevaluate their positions.
On the trading front, over 321.5 million shares were exchanged at the bourse, with a total value of Rs 10.8 billion. HASCOL led the volumes chart, with the trading of over 29.3 million shares.
As the market continues to navigate through these uncertainties, market participants are advised to stay vigilant and closely monitor developments in fiscal policies, international negotiations, and economic indicators. The upcoming monetary policy announcement and any subsequent measures by the government will likely influence the direction of the stock market in the coming days, making it imperative for investors to stay informed and agile in their decision-making.
