Bearish sentiment prevailed at the Pakistan Stock Exchange (PSX) on Wednesday, as the benchmark KSE-100 index fell below 75,000 during trading on Wednesday.
The KSE-100 started the session positive but soon the bears took control of the market and kept the index largely into the negative territory.
At close, the benchmark index settled at 74,836.30, down by 681.19 points or 0.90%.
Across-the-board selling pressure was witnessed among key sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs, and refinery.
Index-heavy stocks including OGDC, PPL, SNGPL, HBL, NBP were in the red.
Experts attributed the selling pressure to the government’s anticipated measures in the upcoming fiscal year 2024-25 budget. The government aims to achieve fiscal discipline and enhance its tax revenues.
As per reports, major changes are expected in tax laws through the Finance Bill 2024 to increase the cost of financial transactions of the non-filers of income tax returns and introduce enforcement measures of Rs 300-400 billion in 2024-25.
The Finance Bill 2024 would also enhance the powers of the Directorate General of Digital Invoicing, Federal Board of Revenue (FBR) to document the supply chains of all major businesses.
On Monday, selling pressure was also witnessed at the bourse as the benchmark KSE-100 index lost 466 points during trading to settle at 75,517.49.
It is pertinent to mention that the stock market was closed on Tuesday on account of a public holiday announced by the federal government.
Globally, China stocks edged up on Wednesday, as the International Monetary Fund (IMF) upgraded its economic growth forecasts for the Asian giant.
China’s economy is set to grow 5% this year, after a “strong” first quarter, the IMF said on Wednesday, raising its earlier forecast of 4.6% expansion.
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