Pakistan Stocks Fall by 663 Points on Proposed Tax Measures

Pakistan Stocks Fall by 663 Points on Proposed Tax Measures

Karachi, Pakistan – June 11, 2024: Pakistan stocks extended their losses on Tuesday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) dropping by 663 points amidst concerns over proposed tax measures in the upcoming budget for the fiscal year 2024-25.

The KSE-100 index concluded the trading session at 72,589 points, down from the previous day’s closing of 73,252 points. Analysts at Topline Securities described the day’s trading as volatile, with the index opening at 73,866 points, reaching a low of 72,476 points, and ultimately settling at 72,589 points, marking a decrease of 0.91% or 663 points.

The negative trajectory of Pakistan stocks was largely influenced by the performance of companies such as SYS, MEBL, MARI, OGDC, and ENGRO, collectively contributing to a loss of 280 points.

Analysts attributed today’s selling pressure in the Pakistan stocks to concerns over potential tax hikes in the upcoming budget, scheduled to be announced tomorrow. Investors are apprehensive about the impact of increased taxes on corporate profitability and overall sentiment at Pakistan stocks.

Despite the decline, trading activity remained robust throughout the day at Pakistan stocks, with over 371 million shares traded, amounting to a total value of Rs11 billion. K-Electric Limited (KEL) led the volumes chart, with over 45 million shares traded.

The market’s response reflects investors’ cautious stance ahead of the budget announcement and their anticipation of potential policy changes that could affect various sectors of the economy. Investors are closely monitoring developments and adjusting their investment strategies accordingly to mitigate risks and capitalize on opportunities.

As the budget announcement approaches, participants of Pakistan stocks are keenly awaiting clarity on fiscal policies, taxation measures, and economic reforms proposed by the government. The budget’s impact on key sectors such as energy, banking, and manufacturing will likely shape market dynamics in the days to come.

Amidst uncertainties, market analysts advise investors to maintain a diversified portfolio, stay informed about market trends, and adopt a prudent approach to risk management. The coming days are expected to be critical for Pakistan’s capital markets as investors react to budgetary announcements and adjust their investment strategies accordingly.