Stocks end last session of FY24 on bearish note

Stocks faltered on Friday, the last session of the outgoing fiscal year, despite the passage of the tax-laden budget 2024-25, which set the course for the smooth securing of a new IMF loan. Initially starting on a positive note, the benchmark KSE 100 index came under pressure and failed to sustain bullish momentum as investors took profits amid predictions of a spike in inflation. Ahsan Mehanti of Arif Habib Corporation stated that the stock market moved lower due to fiscal year-end selling pressure and futures rollover. However, concerns arose over the expected higher CPI inflation for June and $918 million profit repatriation, leading to massive foreign outflows in May. Outflow of profit and dividends rose to $1.805bn in July-May while it was just $313m in the same period of the last fiscal year, almost six times higher.