Pakistan Stock Exchange (PSX) on Monday declined as its benchmark KSE-100 index shed nearly 1,500 points in intraday trading, according to a media report.
The stock exchange was under severe selling pressure right from the start, with KSE-100 losing 514 points and sinking to 44,037 within the first 10 minutes.
Following a brief respite, the market continued its downward trajectory again, reaching the day’s low at 43,050.88 points and representing a loss of 1,472.45 points.
The benchmark index closed at 43,266.97 points, a loss of 1284.38 points.
Raza Jafri, Head of Equities at Intermarket Securities, said a variety of domestic and international factors were behind the dip.
“The key risk factors for Pakistan have all come together at the same time whether it is domestic politics or geopolitics, commodity prices, inflation or even security. The market will price in these risks quickly and it is doing so.” said Raza Jafri.
It is pertinent to mention here that things are set to heat up in domestic politics as Prime Minister Imran Khan faces the prospect of having a no-confidence motion tabled against him in the parliament.
However, the CEO of Topline Securities, Mohammad Sohail, linked the stock plunge with the news of rising oil prices, which he said was an unfavorable development for the country’s economy in terms of higher fiscal and current account deficit. “As a result of this, investors are selling shares in panic,” he said.
