KARACHI: The Pakistan Stock Exchange (PSX) continued its downward trend due to growing concerns about proposed tax measures in the upcoming federal budget, which is set to be unveiled on June 10 instead of June 2.

Topline Securities Ltd said a range-bound session was observed at the exchange as the index traded between its intraday high of 389 points and low of 488 points with low volumes to finally close at 119,102.67, down 50.37 points or 0.04 per cent day-on-day.

The top positive contribution to the index came from Engro Holdings, Attock Refinery, Packages Ltd, Meezan Bank, and Pakistan Services Ltd, as they cumulatively added 280 points. Conversely,Fauji Fertiliser, MCB Bank, Systems Ltd, Mari Energies, Pakistan Petroleum, Habib Bank, Hub Power, and EngroFertiliser, wiped out 257 points.

Ahsan Mehanti of Arif Habib Corporation said the market closed loweramid pre-budget uncertainty and concerns about weak exports.

He said mainly secondand third-tier scrips weretradedasinvestorskeptto the sidelines owing to uncertainty over the IMFdriven federal budget, which was expected to bechallenging for the industry, exporters, auto, oil, andfertiliser sectors.

Ali Najib, Head of Sales at Insight Securities, said the PSX remained bearish due to investor caution ahead of the upcoming federal budget, concerns over proposed tax measures and profit-taking activities.

In addition, he added that the anticipated usual selling pressure during roll-over (from May to June contracts) commeneing next week could be a reason for sluggish trading.

Market participants continued selective portfolio realignment in anticipation of key fiscal measures and potential policy shifts.Market participation weakened sharply as the trading volume plunged 42.68pc to 388 million shares while the traded value dipped 39.92pc to Rs18.51bn.