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Pakistan Stock Exchange crashes again with over 940 points decline in intra-day trading

On Monday (May 9), the Pakistan Stock Exchange 100-index had already lost more than 1500 points. Analysts have urged the allied government to expedite the process of talks with the IMF for the resumption of enhanced loan, involving $8 billion loan.

ISLAMABAD: Pakistan Stock Exchange again crashed on Wednesday, shedding more than 940 points during intra-day trading. In percentage, the PSX-100 index lost 2.18 percent of the market value at 2:10pm. Market traded 5.41 billion rupees shares and the volume of traded shares amounted to 112 million. The PSX-100 index has dropped to 42,508 points, after touching 43,649 points on Wednesday morning at around 9.35 am.

Capital market analysts said that delay in government-IMF talks are triggering economic uncertainty in the country, making markets more vulnerable and sensitive.

On Monday (May 9), the Pakistan Stock Exchange 100-index had already lost more than 1500 points. Analysts have urged the allied government to expedite the process of talks with the IMF for the resumption of enhanced loan, involving $8 billion loan.

On Monday (May 9), the PSX-100 benchmark index fell to 43,991 points at 11am with 848 points decline. In percentage the market lost 1.89 percent of its capital. The PSX traded 2.026 billion rupees shares till Monday morning.

Analysts are of the opinion that the government would have to enhance petroleum and electricity prices ahead of fresh talks with the IMF to pave the way for seventh review of the economy of the country.

It is worth noting that the stock market in the country demonstrated a dismal behavior from the day the National Assembly was dissolved on the advice of Prime Minister Imran Khan soon after the unconstitutional dismissal of no-trust move by the deputy speaker Qasim Suri on April 3.

Since April 3, dollar-rupee exchange rate hit 190 rupees in the open market from earlier 179 to 180 rupees exchange rate. Thus, stock market and rupee were on the forefront in facing blow of the dismissal of the democratic system in the country.

After showing short gains when the new government was formed, the capital market has, once again, derailed as the government remained undecided on reversing the subsidy programme of Imran Khan government. IMF has linked the resumption of talks with reversal of the Khan’s subsidy programme and the allied government’s inability to make a decision on this crucial front has created panic in the capital markets in the country.

End

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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