Pakistan Stock Exchange Closes Lower Amid Budget and IMF Tax Concerns

The Pakistan Stock Exchange (PSX) ended the week cautiously, with the KSE-100 index declining 50.37 points (-0.04%) to settle at 119,102.67.

Investor anxiety ahead of the federal budget and concerns over proposed International Monetary Fund (IMF)-backed tax measures targeting exporters and industrial sectors drove the negative close.

Market Overview

• KSE-100 Index: Closed at 119,102.67, down 50.37 points (-0.04%).
• Intra-day Range: High of 119,542 (+389 points), low of 118,665 (-487 points).
• Trading Volume: 338 million shares (down from 589.8 million).
• Traded Value: Rs18.5 billion.
• Foreign Investor Activity: Net sales of Rs336.5 million (NCCPL).

Key Drivers

• Pre-budget uncertainty and proposed IMF-backed tax measures targeting exporters and industries.
• National Assembly’s approval of Off-grid (CPPs) Levy Bill.
• Rupee instability impacting investor sentiment.

Top Performers

• Engro Holdings: +3.08%
• Attock Refinery: +3.48%
• Pakgen Power: +4.6%

Top Decliners

• Fauji Fertiliser Company: -1.91%
• MCB Bank: -1.09%
• Systems Limited: -0.98%

Market Outlook

• Resistance: 120,000 points.
• Support: Risk of further declines if support levels break.
• Recommendation: Investors should wait for dips before entering new positions, per JS Global.

The PSX faces ongoing uncertainty as the federal budget and IMF negotiations loom. Investors are advised to monitor key developments, including tax policy changes and currency stability, which could influence market direction. For now, consolidation is expected, with resistance at 120,000 and support levels under scrutiny.

Sources

• Arif Habib Limited (AHL)
• Topline Securities
• JS Global
• National Clearing Company of Pakistan Limited (NCCPL)