PSX shows small recovery after hemorrhaging 2,000 points over super tax

Benchmark KSE-100 index closes 3.90% lower at the end of the trading session

The Pakistan Stock Exchange (PSX) on Friday plunged over 2,000 points within minutes of Prime Minister Shehbaz Sharif announcing a new 10% ‘super tax’ on big industries, but make a small recovery of around 400 points in the second half of the day.

The benchmark KSE-100 index closed at least 1,665 points, or 3.90%, lower at the end of the trading session, with some scrips moving back to green in the afternoon.

Prime Minister Shehbaz Sharif Friday morning stated that the country desperately needed to raise more funds through tax measures and announced the imposition of 10% super tax on large-scale manufacturing industries including cement, steel, automobiles, sugar, oil and gas, fertilizers, cigarettes, beverages, chemicals, banking, LNG terminals etc.

As a result of the announcement, the stock market plunged from 42,691.66 points to a low of 40,663.62 points within just 10 minutes, down by about 2028.04 points - or 4.81%.

Cumulatively, the index was down by 2,053.35 points from the previous day’s close of 42,716.97 points.

The energy sector was badly hit with scrips of K-Electric, Cnergy, and Pakistan Refinery limited falling between 2.80% and 10%.

However, a small recovery was seen in the afternoon with investors buying back shares. K-Electric closed at Rs2.86 or 0.35% higher of the intraday trading.

The market nevertheless never crossed back the 42,000 mark and closed at 41,051.79.

Investors lost a total of Rs230 billion on Friday due to the market crash.

Pakistan Stock Exchange

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