Stock market extends losses ahead of federal budget presentation

Continuing its downward march, the Pakistan Stock Exchange (PSX) on Tuesday recorded a notable drop of over 650 points, primarily owing to investor fears over potential announcement of tough tax measures in the federal budget for fiscal year 2024-25. Although the bourse got off to a robust start, when it touched the intra-day high of 73,866.44 points, it failed to maintain the positive momentum. Bearish activity was fueled by anticipation of subdued economic growth, cautious stance of the State Bank of Pakistan (SBP) in monetary policy and concerns over the unresolved circular debt that swelled to more than Rs5.3 trillion.