New taxes triggered today’s stock market session. Panic selling ruled the roost of PSX.
A $2.3 billion loan from a Chinese consortium has been credited to Pakistan’s central bank, bolstering the country’s foreign reserves. Despite this good trend, the PSX fell more than 2000 points due to the federal government’s recently implemented super tax.
The KSE-100 index began in the green but quickly fell as the PM announced a 10% super tax on all large-scale industries, including cement, steel, sugar, oil & gas, fertilizer, banking, chemical, automobile and beverages.
New taxes trigger the stock market to crash as the panic selling ruled the roost of PSX. Towards the end, the benchmark 100 index tumbled by 1,665 points or 3.90% and settled at 41,052 levels amid expanding market participation. Overall’ the market sheds 1,088 points or 2.58% for the outgoing week on a net week on a week basis.
Major drag to the 100 index came from the UBL,HUBC,ENGRO,MCB,LUCK,POL,PPL,BAHL & OGDC dragging the index down by 679 points while on the flip side a minor positive contribution came from the EFUG,MUREB,ATLH,KEL,ICI & BNWM contributed 14 points to the index cumulatively.
Technically speaking, the 100 indexes plunged by 3.9% on panic selling and settled at 41,052 levels amid expanding market participation. Immediate support could be seen around 40,108 point levels (25 exponential envelope lower boundary support levels).
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