The Pakistan Stock Exchange (PSX) showed a pattern of crests and troughs throughout the intraday trading on Tuesday, closing at 60,464.24 points with a marginal gain of 0.01% or 4.50 points.
As per data available on the PSX website, the market opened with an upward trend, and around 11:30 am, the benchmark index touched the 61224.45 level, gaining 764 points. A visible positive momentum prevailed in the trading until noon when the index started descending.
The stock market posted 586.78 points gains on Monday and closed at 60,459.74 level.
On the political front, clouds of uncertainty have not been fully cleared even after two weeks of general elections held on February 8, hanging the formation of government is still in limbo and this overall situation is enough to shake the confidence of investors.
The Pakistan Muslim League-Nawaz (PML-N) convened a meeting with the Pakistan People’s Party (PPP) on Monday, aiming to explore the potential formation of a coalition government in the centre.
On the flip side, Fitch Ratings said in its recent report that the close outcome of Pakistan’s election and resulting near-term political uncertainty may complicate the country’s efforts to secure a financing agreement with the IMF.
“A new deal is key to the country’s credit profile, and we assume one will be achieved within a few months, but an extended negotiation or failure to secure it would increase external liquidity stress and raise the probability of default.”
Pakistan’s sovereign dollar bonds also experienced a decline of up to 1.25 cents on Monday, amid inconclusive polls and political uncertainty.
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