Index falls below 74,000 on dismal outlook

Amid growing uncertainty about the economic outlook ahead of the budget unveiling, which has been delayed to June 12, the bearish spell continued at the stock market for the fourth consecutive session on Thursday, dragging the benchmark index below the 74,000 level. Ahsan Mehanti of Arif Habib Corporation stated that stocks closed lower due to concerns about economic uncertainty. Investor expectations for a cautious SBP monetary policy and subdued growth impacted investor sentiment. He said reports of likely harsh conditions in the new IMF programme, such as a hike in power tariffs and fresh taxation measures in the budget 2024-25, contributed to the bearish close. In its market report, Topline Securities Ltd noted that equities started the session positively. However, the index could not sustain the 74,000 level due to a selling spree triggered by concerns that the government may raise taxes on dividends, capital gains and interest income in the upcoming budget.