KARACHI: The Pakistan Stock Exchange faced a significant downturn on Tuesday, following a brief uptick, largely attributed to economic uncertainty stemming from recent political changes. This decline pushed the index below the psychological threshold of 48,000 points.
The stock market registered a substantial drop with 81% of share prices plummeting, causing investors to incur a loss of 1.049 trillion rupees. Market analysts pointed out that the market did not respond positively to the announced refinery policy due to a lack of perceived effective measures. Selling pressure was particularly pronounced in the refinery, oil and gas, and banking sectors, resulting in a sharp decline of 1051 points at one juncture during the trading period. However, towards the end of the trading session, buying interest in the cement sector at lower prices mitigated the extent of the fall. The KSE 100 index concluded at 47,429.83 points, marking a decrease of 956.42 points.
Simultaneously, the political shift prompted concerns about IMF conditions under the caretaker government and potential rupee devaluation, thereby driving a continued rise of the dollar in the interbank market. Paradoxically, the dollar experienced initial gains in the open market but later receded below 295 rupees by the close of trading, reversing its earlier rally.
The interbank market saw the dollar finish at 287.91 rupees, reflecting a 49-paise increase. In the open currency market, the dollar closed at 294.75 rupees, declining by 25 paise.
Financial experts speculate on stringent economic measures during the caretaker government phase before the dissolution of the assemblies. This is coupled with concerns regarding fractured political alliances.
In a separate development, local bullion markets witnessed a decrease in gold prices on Tuesday. The price per tola decreased by Rs 600, bringing it to Rs 221,100, while the price per ten grams dropped by Rs 514 to reach Rs 189,558.
