Stocks extend losses on profit-taking
On the eve of Independence Day, the stock market extended the overnight losses in mixed trading as jittery investors opted to take profits on Tuesday amid mounting political tensions. Ahsan Mehanti of Arif Habib Corporation said stocks closed lower on uncertainty over IMF’s approval for the proposed termination of contracts with 15 independent power producers and a likely cut of up to Rs400 billion in the Rs1.4tr Public Sector Development Plan for 2024-25, depressing market sentiments. He added that geopolitical uncertainty, a weak rupee and dismal auto sales falling by 36 per cent month-on-month in July also contributed to the bearish close. Topline Securities Ltd said bears dominated the trading arena despite a positive start. However, investors chose to take some profit, which compelled the benchmark index to go into negative territory.