PSX continued the plunge today as well by falling 1.8% to ~44,250 and Rs ~23b traded. The decline remained sharp as investor voiced concerns over sharp selling from Mutual Funds yesterday amid excessive leverage in the market. Similarly, fears of tax reversals/new taxes in Money Bill approved by the Prime Minister may also dampen market sentiment as investors await full & final impact of govt measures to increase taxation. To recall: Next fiscal year tax target is ~Rs 6tn.
While the temporary selling from mutual funds might subsidy in few days, Senate Chairman election this Friday might (hopefully) reduce political temperatures. Individual investors are still on the buying spree. IMF’s expected tranche/approval would pave way for global bond issuance & reduced credit risks. Valuations are attractive for medium term given the current risk-free rate, currency stability & earnings growth. It’s time to withstand the turmoil. Fruits shall follow.
Highest activity was recorded in GGL (+7.46%) with 41.2mn shares traded, UNITY (-7.3%) with 33.3mn shares and TRG (-6.4%) with 25.5mn shares traded.