Bloodbath at PSX as KSE index sheds over 1,100 points

The Pakistan Stock Exchange (PSX) witnessed on Monday a declining trend as the benchmark KSE-100 index plunged by more than 1,100 points to close well below the 41,000 mark, reported 24NewsHD TV channel.

According to the financial experts, the benchmark KSE-100 index closed well below 41,000 mark due to intense selling pressure of shares by the investors amid rising price of the US dollar.

The experts have also linked today’s bearish activity to the government increasing taxes on the banking sector in the budget, among other factors.

It is to be noted here that in the budget for the upcoming financial year, the government has increased windfall gain tax for banks from 39pc to 42pc that were earning secure profits because of huge investments in government securities.

It also merits a mention here that the stock market had closed last week on a slightly positive note on rising crude oil prices and the likely resumption of the International Monetary Fund (IMF) loan programme in the near term.

On the other hand, the US dollar has now shattered all previous records as it has increased by Rs1.65 to Rs204 for the first time in the history of Pakistan in interbank trading.

The US dollar on the first business day of the week Monday lost 35 paisas against the Pakistani rupee to reach Rs202 from Rs202.35, but, around 10:30am, the greenback gained 65 paisas and reached Rs203 mark.

After some time, it reached Rs204, all time high in Pakistan’s history.

The previous week’s close was Rs202.35.

 Reporter: Ashraf Khan