The Pakistan Stock Exchange (PSX) experienced a downturn amid escalating political instability and uncertainty, with the benchmark KSE-100 index plummeting 1.82% of its value during Thursday’s trading session.
This decline, particularly notable in the energy sector, led to the index closing at 61,020.05 – a fall of 1133.79 points.Â
Major contributors to this downturn included key stocks such as OGDC, PPL, and PSO, all of which ended the day on a negative note.
Analysts have pointed to the increasing political unrest and its anticipated negative repercussions on the nation’s economic stability as primary drivers of the deteriorating market sentiment.
This sell-off was triggered by revelations that the International Monetary Fund (IMF) had reservations about the government’s strategy for managing circular debt. However, the market later managed to recover remarkably.
The recent inconclusive election outcomes have further exacerbated these concerns. Moody’s latest report highlights significant apprehension regarding Pakistan’s ability to secure a new agreement with the IMF following the expiration of the current program in April 2024, underscoring the heightened uncertainty surrounding the country’s economic prospects.
