Stocks slump as budget uncertainty prevails

Pakistan Stock Exchange (PSX), while continuing its downward trajectory, endured a slump on Tuesday as the KSE-100 index dropped over 900 points amid uncertainty ahead of the federal budget presentation. Although the index had a promising start when it reached the intra-day high of 75,669.76 points, it was unable to maintain the momentum due to rapid selling. The downturn came due to several factors including the weak rupee, falling global crude oil prices and political instability. Additionally, a 9% drop in petroleum sales in July-May FY24, increased power tariffs and a potential reduction in federal development spending aided the bearish trend. Notably, tech, exploration and production (E&P), and power sectors were the primary contributors to the decline. As a result, the market fell below the 75,000 mark and reached the intra-day low of 74,592.74 points. It closed near the day’s low. “Stocks slumped amid uncertainty ahead of the federal budget for FY25,” said Ahsan Mehanti, MD of Arif Habib Corp.