PSX: Stock Sinks Amidst Political Uncertainty, Fear Of New Taxes

Aizbah KhanWeb Editor

11th Mar, 2021. 05:23 pm
Pakistan Stock Market Has Made History, Crosses 1 Billion Shares

The Pakistan Stock Exchange (PSX) remained negative on the fourth day of the business week and the KSE 100 Index fell further by 912 points (2.09%) to 42,780 points.

Trading started on Thursday at the level of 43,492 points after which the market reached the highest level of the day at 43,891 points, but then it started declining and at one point the index fell more than a thousand points with 42 thousand 688 points.

The stock market has lost 3,057 points in the first four days of the current business week, which has come as a shock to investors.

Yesterday, the 100 indexes fell 531 points to 44,000 points below the psychological threshold.

The deepening shadow of political uncertainty has forced investors to step back and seek to consolidate their position ahead of Friday’s election of chairman and deputy chairman of the Senate and then the opposition’s long march.

Ali Farid Khawaja, chairman of KASB Securities, said there were several reasons for the decline.

He said concerns about the political uncertainty could linger until the election of the chairman of the Senate, adding that there were fears of new taxes being imposed and tax breaks in various sectors, including construction and IT.

He said that the third reason is the uncontrollable inflation and the rise in oil prices to  $70 in the world market, while the market is also expected to raise interest rates.

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