The Pakistan Stock Exchange (PSX) started the day on a downward trajectory, plunging over 1,100 points due to “concerns” surrounding the country’s political climate.
During intraday trading, the benchmark KSE-100 index fell to 80,671.03 points, down by 1,168.83 points or 1.43% from the previous day’s close of 81,839.86 points.
According to Raza Jafri, CEO of EFG Hermes Pakistan, the market’s current pressure might be attributed to political uncertainties, especially following a recent strong rally. He mentioned that while it’s challenging to predict significant disruption at this point, potential value buyers might emerge if the decline deepens.
Saad Ali, Director of Research at Intermarket Securities, noted that the drop could be partially due to profit-taking after the recent rally fueled by news of the International Monetary Fund (IMF) programme. He also suggested that increased political tension following the Supreme Court’s decision on reserved seats might have impacted investor sentiment. Additionally, some market participants may be anticipating a pause in monetary easing in the upcoming July Monetary Policy Committee (MPC) meeting.
Previously, the benchmark index had surged to near an all-time high on Thursday, driven by favorable economic policies, international rating reviews, and agreements, notably a staff-level agreement with the IMF. The index had risen by 684.25 points or 0.84% to close at 81,839.86 points.
