Stocks fell for the fifth consecutive session on Thursday, losing more than 1,700 points due to suspicions of an interest rate hike, economic uncertainty, and the rupee’s relentless depreciation.
The Pakistan Stock Exchange (PSX) continued its downward path, with the KSE-100 index falling 1,747.63 points to 44,496.92 by 2:49 pm, down 3.78 percent from yesterday’s close of 46,244.55.
The KSE’s decline, according to economic experts, was caused by a lack of transparency in politics and the economy.
The market is under pressure due to economic uncertainties and the rupee’s relentless depreciation.
“The caretaker finance minister’s assertion for lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in bearish close,” said analyst Ahsan Mehanti.
It is worth mentioning here that the market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps.
On the other hand, the rupee remained under pressure and slid further against the US dollar in the open market on Tuesday, trading above Rs322 to the greenback.
According to the Forex Association of Pakistan (FAP), the rupee had depreciated to Rs305.80 in the interbank market against the dollar.
According to the Forex Association of Pakistan (FAP), the rupee has declined to Rs305.80 against the US dollar in the interbank market.