Stocks plunge 1,135 points on adverse budget measures

KARACHI: Pakistan stocks plunged 1,135 points on Monday owing to concerns over measures taken in the budget 2022/2023.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 40,880 points from last Friday’s closing of 42,015 points, showing a decline of 1,135 points.

Analysts at Arif Habib Limited said that the PSX witnessed a bloodbath session today due to high inflationary and post-budget concerns.

The KSE-100 index plunged by over 1,179 points as investors were unable to digest the adverse measures announced in the budget.

Moreover, Pakistan rupee (PKR) continued to decline against US dollar. Banking sector stayed in the red zone due to harsh taxation imposed in the budget. Institutional investors remained on the sell-side due to redemptions arising from the mutual funds.

Sectors contributing to the performance include Banks (-481.9 points), E&P (-134.9 points), Cement (-97.5 points), Technology (-96.6 points) and Fertilizer (-74.9 points).

Volumes increased from 115.9 million shares to 163.8 million shares (+41.4 per cent DoD). Average traded value also increased by 41.8 per cent to reach US$ 21.4 million as against US$ 15.1 million.

Stocks that contributed significantly to the volumes are HUMNL, CNERGY, KEL, UNITY and PRL.