The Pakistan Stock Exchange (PSX) witnessed heavy selling pressure on Tuesday as the benchmark KSE-100 index broke over 1,100 points in intraday trading.
According to the PSX website, the KSE-100 index opened at 41,367.11 points and initially went up 176 points.
However, after 10:30 am the bears took control and the market started declining. At around 3:25 pm, the index touched 40,313.78 – a decline of 1,053.33 points or 2.55 per cent.
Market fall with depreciation in rupee All time low For the second day in a row against the dollar.
Raza Jafri, head of research at Intermarket Securities, attributed the sharp fall in PSX to “panic” to shift from money markets to equities.
He added that sticking to the International Monetary Fund’s (IMF) program has the market worried it could prove “politically difficult”.
“Pakistan cannot tolerate this. It is a difficult situation with the fear looming large over investors,” he said.
Ahsan Mehnty of Arif Habib Corporation also shared a similar view. “The depreciation of the rupee is affecting the stock market,” he said. don.com,
“We have seen a sharp sell-off of blue chip stocks today, the impact of which is now visible,” said Mehnti, adding, “The market will continue to remain under pressure in the near future.
He explained that investors would now prefer safer investments, which was the reason for the recent drop in average trading volume.
The analyst said that the political uncertainty and formation of a new government in Punjab is also affecting investor sentiment.
Meanwhile, Salman Naqvi, head of research at Aba Ali Habib Securities, blamed Fitch for the market fall. downgrade Pakistan’s outlook from stable to negative as well as political uncertainty.
more to follow