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KARACHI: 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.
He added that over-leveraging and concerns for harsh tax measures in the approved federal budget FY25 dampened investor sentiments.
According to Topline Securities Ltd, the benchmark KSE 100 index gained 3.42 per cent month-on-month in June due to a better-than-market expectations budget as the tax rate on dividends and capital gains from the stock market for filers was maintained, whereas the tax rate on other asset classes was increased.
It said a range-bound session was observed during the week’s last trading session. Faysal Bank, Meezan Bank, Pakistan Services, Nestle Pakistan and Pakistan Telecommunication Company Ltd contributed significantly to the index, cumulatively adding 155 points. On the other hand, MCB Bank, United Bank, OGDC, Hub Power and Fauji Fertiliser cumulatively shaved off 310 points.
PTCL was the volume leader with 71m shares, as it announced that the International Finance Corporation had approved the debt financing of up to $400m for the acquisition of Telenor Pakistan Ltd.
As a result, the benchmark index hit an intraday high at 78,784.23 points and a low of 78,312.36. However, the index closed at 78,444.96 after losing 83.29 points or 0.11pc on a day-on-day basis.