The Pakistan Stock Exchange continued its sharp decline on the second day of the business week with the KSE 100 index falling by over 900 points.
The stock market is also bearish as the rupee depreciates, where the dollar has hit a record high for the second day in a row.
According to the Pakistan Stock Exchange website, the KSE 100 index opened at 41,376.11 points, an initial gain of 176 points.
However, after 10:30 AM, the market declined, at around 3:25 PM, the index reached 40,313.78 points, a decrease of 1,54.33 points or 2.55%.
The KSE 100 index lost 978.04 points to close at 40,389.07 points.
Director Arif Habib Corporation Ahsan Lagadi said that the impact of depreciation of the rupee is having an effect on the market. Is.
Inho said that when the dollar appreciates, inflation increases, the effects of which can further increase the markup rate. Business volume has been decreasing for a month.
Ahsan Lajadi said that political uncertainty and new government formation in Punjab are also affecting investors’ confidence.
Raza Jafri, head of research at Intermarket Securities, termed the fall in the stock market as ‘frightening’ and said it was a shift from the money market to equities.
He said the market downturn is creating difficulties for the International Monetary Fund (IMF) program and may prove politically difficult.
He said that Pakistan cannot afford this and it is a difficult situation for already worried investors.
It should be noted that there is already political uncertainty in the country and this is after the Pakistan Tehreek-e-Insaf (PTI)’s historic defeat of the largest party in the coalition government to the Pakistan Muslim League-N (N) in the by-elections in Punjab. Uncertainty has increased and PTI is now calling for early elections after this victory.