Stock market continues to falter on annual budget expectations

KARACHI: Despite an initial surge in response to an interest rate cut, the Pakistan Stock Exchange (PSX) experienced a decline of over 600 points on Tuesday.

Pressures on the stock market continue as concerns over potential stringent budgetary measures dampen investor sentiment. Today the index opens at yesterday’s closing of the benchmark KSE-100 index at 72,589.49 points.

PSX slumps further, shedding 663 points by close

The federal government is slated to announce federal budget for fiscal year 2024-25 today, after which the index is expected to stabilise after initial response, which might or might not be positive.

Overall, the reduction in central bank’s policy rate and otherwise improving economic indicators are likely to lend strength to the index going forward. For now, the market trends are showing impact of apprehension surrounding potential fiscal tightening measures in the upcoming budget.