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Stock market crashes with over 1500 points decline in intra-day trading, dollar gains more value amid rumours about talks with IMF

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.

ISLAMABAD (May9): Pakistan Stock Exchange (PSX) crashed today with more than 1500 points decline amid rumours that IMF delegation has delayed its visit to Pakistan for seventh review as IMF wants government to enhance petroleum and electricity prices ahead of fresh talks.

The value of dollar also crossed 188 rupees in the inter-bank once again on Monday due to speculations in the market. In the open market, the dollar-rupee parity surpassed 189.50 rupees rate.

The KSE-100 index opened at 44,840.81 points and shed 1551 points or 3.46% during the intraday trade. The PSX was at 43,239 points around 12:55pm.

On Monday, the PSX-100 benchmark index fell to 43,289 points at 11am with 1550 points decline. In percentage the market lost 3.46 percent of its capital.

The PSX-100 index opened with 44,840 points today and it witnessed a massive selling pressure with speculations gripped the market about talks with IMF.

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.

Pakistan Stock Exchange made some recovery today (April 4) while anticipating a suitable decision by the Supreme Court about the dissolution of National Assembly and dismissal of no-trust move by Deputy Speaker.

On Monday, Chief Justice of Pakistan said that the court will announce a suitable decision, but the court adjourned the hearing till Tuesday sharp noon.

On Tuesday the stock market begun trading with more than 100 points decline, but equities made some recovery in anticipation of a good decision of the apex court which can pull out the country from the prevailing serious political and constitutional crisis.

A day earlier, Pakistan Stock Exchange has strongly reacted to dissolution of National Assembly and it crashed by more than 1200 points at the start of trading this morning (April 4). The PSX benchmark 100-index closed with a decline of over 1200 points on Monday.

Dissolution of National Assembly has shocked investors who were expecting a clear decision in the wake of majority of opposition parties in the parliament. Instead of facing a no-confidence move, the PTI government rejected it ‘terming it a conspiracy’ and on the advice of Prime Minister, President of Pakistan Dr Arif Alvi dissolved the National Assembly, shocking everyone in the country and abroad.

At present, Pakistan Stock Exchange is trading around 43,289 points with a decline of 1551 points till 1:50 pm on May 9.

Story was updated at 1:50 pm on Monday (May 9).

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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