The benchmark KSE100 is likely to trade under pressure as anxiety exists among investors on fears of a further hike in taxes along with new ones. The IMF has imposed a strict condition of significant revenue growth target of 35% for the Bail Out Program. This is likely to put more burden on existing taxpayers while withdrawals of tax subsidies are also imminent. This is expected to dampen investor’s sentiment.
On the political arena, Opposition parties are heating up the temperature as they plan to carry out countrywide protests against the Government. Market participants believe that Government’s move to launch a Stock Market Bailout Fund of Rs. 20bn is unlikely to hold up sentiment for long as the fund is expected to invest into Government’s listed companies only.
Commercial Banks are likely to come under pressure as the implementation of TSA (Treasury Single Account) is quite imminent. Investors will resort to wait & see until the budget is announced and full details are available as it would provide much-needed clarity for the future path