The Pakistan Stock Exchange has started the week on a negative note, with the benchmark KSE-100 index losing 497.97 points, or 0.95 per cent, by the close of the trading session to reach 52,138.90.

Volumes were led by cement company stocks.

63.34 million shares changed hands by the end of the session, with a total worth of nearly Rs9.46 billion.

"The market declined steadily as participants booked profits after the government increased taxes on dividends and capital gains and extended 'Super Tax' imposed two years ago on corporates for one more fiscal year," said Ali Raza from Elixir Securities.

He added, "Anxiety on domestic politics likely kept most participants on the sidelines after Joint Investigation Team tasked to probe PM family's offshore asset intensified its investigations by reportedly grilling the Premier’s son for less than an hour."

Fahad Qasim of Topline Securities said, "The KSE-100 index shed 498 points in the first session post budget as investors weighed implications of single-slab CGT and higher tax on dividends"

Ahsen Mehanti of Arif Habib Corp said, "Stocks closed bearish amid institutional profit taking post-federal budget announcements."

"Support witnessed in selected oil stocks amid a surge in global crude prices. Flat rates of capital gain tax, super tax on the corporate sector, reduction of subsidies in fertiliser sector, additional tax levies on steel and cement sectors played a catalyst role in bearish close."

Stocks of 372 companies were traded, of which 109 gained in value, 251 declined and 12 remained unchanged.

Volumes were led by:

1. Power Cement(R): 23.49m shares traded [-1.41pc];

2. Aisha Steel Mill: 11.9m shares traded [-1.51pc];

3. Bank of Punjab: 10.58m shares traded [-1.11pc];

4. Engro Polymer: 10.44m shares traded [-1.75pc]; and,

5. TRG Pak Ltd: 7.10m shares traded [-3.43pc].