KARACHI: The Pakistan Stock Exchange (PSX) fell 267 points on Monday after the government decided to eliminate fuel subsidies and Moody’s decision to modify Pakistan’s outlook to negative, according to ARY NEWS.
After shedding 267 points, the KSE-100 index traded at 41,037 points in early trading on the Pakistan Stock Exchange (PSX).
The Pakistan Stock Exchange (PSX) fell almost 900 points on Friday, indicating investor pessimism in the market just hours after the government boosted petroleum product prices.
By 4:20 pm, the KSE-100 index had down 925 points to 41,312.11, down from the previous day’s finish of 42,237.91.
According to analysts, the stock market’s bearish trend is the result of the government’s decision to hike the cost of petroleum goods by Rs30 per liter, as well as electricity rates.
Investors’ confidence was boosted after the government previously raised fuel prices on the instructions of the International Monetary Fund (IMF) for the revival of the loan program, but the delay in reaching an agreement between the fund and Pakistan has created uncertainty among investors once again.
Pakistan Stock Exchange
The Pakistan Stock Exchange (PSX) is a stock exchange in Pakistan with trading floors in Karachi, Islamabad and Lahore. PSX was classified by MSCI as a frontier market on 8 September 2021.
The PSX was established on 11 January 2016 after the merger of the Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.As of January 2022, there are about 375 companies listed on the PSX with a total market capitalisation of PKR 7,756 billion (USD$52 billion)
US dollar gains value
The US dollar gained value in the interbank market on Monday, after a recent strengthening of the rupee as a result of the government’s move to eliminate fuel subsidies in order to receive a $1 billion tranche from the IMF.
The US dollar gained Rs1.29 versus the rupee, trading at Rs199.21, according to forex dealers. “The US dollar is trading in the open market between Rs198 and Rs203,” they claimed.