PSX loses 1750 points

Karachi: The Pakistan Stock Exchange (PSX) on Thursday lost over 1750 points and the analysts attributed the steep fall to the uncertain political conditions of the country.

The KSE-100 index maintained its bearish trend, dropping by 1784 points to 44,459 by 3pm, down from yesterday’s close of 46,244.55.

Economic experts claim that a lack of understanding of politics and the economics was to blame for the decline in the KSE.

The market is facing selling pressure due to economic uncertainty and the unrelenting depreciation of the rupee.

“The caretaker finance minister’s assertion for lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in bearish close,” said analyst Ahsan Mehanti.

It is worth mentioning here that the market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps.

On the other hand, the rupee remained under pressure and slid further against the US dollar in the open market on Tuesday, trading above Rs322 to the greenback.

The rupee has decreased in value against the dollar in the interbank market to Rs305.80, according to the Forex Association of Pakistan (FAP).