PSX loses 770 points

Karachi: The Pakistan Stock Exchange (PSX) on Tuesday lost over 770 points due to which the investors had to bear loss of billions.

At the beginning of the first day of the business week, the business was bearish and the 100-index saw a sharp decline while the index could not even maintain the 48,000 points mark.

The 100-index of the PSX closed at 47,448 points, an extraordinary decline of 770 points.

According to stock brokers, investors became cautious on the value of the dollar and rising inflation while the PSX recorded a decline of 1400 points in the 10 days of the caretaker government.

Earlier, The Pakistan Stock Exchange (PSX) Monday lost over 700 points and the analysts attributed the steep fall to the uncertain political conditions of the country.

The benchmark KSE-100 index closed at 47,447.95 points, down 770.54 points or 1.6 per cent from the previous close of 48,218.49 points, the PSX website exhibited.

Intermarket Securities Head of Equity Raza Jafri said despite improvement in the last few months, the economy was still vulnerable.

He said July’s large current account deficit was raising concerns of further interest rate hikes especially as inflation was still high.

He added a lack of clarity on circular debt settlement was also affecting investor sentiment.

Last week, the State Bank of Pakistan reported that the current account deficit (CAD) reduced by 36 per cent to $809 million in July FY24 compared to $1.261 billion in the same month of the previous fiscal year.