Karachi, February 4, 2025 – The Pakistan Stock Exchange (PSX) faced further losses on Tuesday, shedding 810 points amid growing concerns over anticipated tax concessions for the property sector.
The benchmark KSE-100 index ended the day at 111,935 points, down from the previous closing of 112,745 points.
This decline follows a significant drop in the market on the previous day, when the KSE-100 Index had settled at 112,745, down by 1,511 points, or 1.32%. Despite some early optimism in the market, where stocks initially rebounded, profit-taking took hold, leading to further pressure on the PSX.
After an early rise, driven by a global market rally, the KSE-100 index reached an intra-day high of 113,649.07. However, the momentum was short-lived as profit-taking quickly reversed the gains, pushing the index lower. By the close of the session, the PSX had lost 810 points, marking a 0.72% decline for the day.
Market analysts are attributing the continued downturn at the PSX to growing concerns about the potential diversion of investments from the stock market to the property sector due to the expected tax concessions. These concessions are anticipated to favor the real estate industry, which has already attracted significant investor attention. The prospect of favorable tax policies for property investments is seen as a shift away from the equity market, where investor confidence is already fragile due to macroeconomic pressures and market volatility.
The loss of 810 points at the PSX underscores the uncertainty surrounding Pakistan’s financial markets, with many investors remaining cautious as they await further details on the property tax measures. The ongoing decline in the market has led to concerns about the broader implications for the stock exchange and the overall economy.
Investors are now closely watching developments regarding the expected tax concessions, as they could potentially redirect significant funds from the PSX to the property sector, further dampening market sentiment. The situation highlights the vulnerability of the PSX to policy changes and external economic factors, leaving market participants in a state of caution. As the situation unfolds, the PSX will likely remain sensitive to any updates regarding the property sector’s tax policies.