The share prices at Pakistan Stock Exchange (PSX) crashed at the start of business on Friday by over 2,000 points but later recovered some of the losses, reported 24NewsHD TV channel.

The benchmark KSE-100 index plummeted by 2,041 points taking the index down through twin barriers of 73,000 and 71,000, hitting as low as 71,090.

Later, buyers were seen active which led to some recovery and at the moment the index was trading at 72,775.68, down by 1,087.25 points.

The fears which are creating jolts in the market were stemmed from the instructions of the IMF highlighting the possibility of a new tax of Rs2 trillion in the coming budget. Brokers said there is a report of increasing the capital gain tax on the income of shares in the budget.

The prevailing economic uncertainty and the State Bank of Pakistan’s (SBP) upcoming monetary policy announcement caused anxiety at the PSX on Thursday also. Amid selling pressure, the KSE-100 touched the intra-day low of 73,768.39 points and closed below the 74,000 mark.

At the end of trading, the benchmark KSE-100 index had recorded a fall of 356.51 points, or 0.48%, and settled at 73,862.93.

Key contributors to the decline were Fauji Fertiliser Company, Oil and Gas Development Company (OGDC), Mari Petroleum, MCB Bank and Pakistan State Oil (PSO), which wiped off 136 points from the index. On the flip side, Bank Alfalah, Systems Limited, Lucky Cement, Engro Corporation and Millat Tractors added 65 points.

Overall trading volumes increased to 352.7 million shares. The value of shares traded during the day was Rs12.3 billion.

Shares of 450 companies were traded. Of these, 134 stocks closed higher, 249 dropped and 67 remained unchanged.

WorldCall Telecom was the volume leader with trading in 17.6 million shares, losing Rs0.01 to close at Rs1.31. It was followed by Kohinoor Spinning with 14.9 million shares, gaining Rs0.18 to close at Rs4.43 and Dewan Motors with 13.7 million shares, losing Rs2.94 to close at Rs39.44.

Foreign investors were net sellers of shares worth Rs194.4 million, according to the NCCPL.

Reporter Ashraf Khan