Stocks tumble 787 points on disappointing budget.

KARACHI -- Stocks plunged on Monday with the KSE-100 index recording a steep drop of 786.72 points (2.27 per cent) to close at 33,824.51. The benchmark, which started out in the negative, remained in the red throughout the session as it mirrored the disappointment of investors' over the federal budget.

Brokers said the budget ignored all the demands of the exchange which were required to encourage investors to enter the equity market.

'A few relief measures announced mainly for the real estate industry and reduction of duties in import of raw materials for couple of sectors were not good enough to attract investors as they expected major tax cuts and incentives in the face of the pandemic,' said the head of a brokerage firm who also contested other contents of the budget, including the ambitious tax collection target of Rs4.96 trillion for FY21.

Investors were also spooked by the announcement of the Punjab health minister who hinted at the lockdown of several areas in Lahore for 15 days after exponential increase in Covid-19 cases and the death toll in the province on the rise.

The negativity was exacerbated by sell-off in global markets on...