Stock Market drops more than 1100 points – SUCH TV
The Pakistan Stock Exchange (PSX) experienced a sharp decline on Friday, with the benchmark KSE-100 index falling by 1,168.83 points or 1.43%, closing at 80,671.03 points compared to the previous day’s close of 81,839.86 points.
According to EFG Hermes Pakistan’s CEO Raza Jafri, the bearish sentiment at the PSX may be driven by concerns over the current political situation, especially after the recent strong rally in the market.
He noted that it is difficult to anticipate any significant disruption, and value buyers may enter the market if the dip intensifies.
Director of Research at Intermarket Securities, Saad Ali attributed the drop to a combination of factors.
He said the decline was partly due to profit-taking after a strong rally since the news of the International Monetary Fund (IMF) program.
The recent increase in political noise following the Supreme Court decision on reserved seats may have dampened investor sentiment.
Some market participants may also be factoring in a pause in monetary easing at the upcoming Monetary Policy Committee (MPC) meeting.
The stock market had reached new all-time highs on Thursday, driven by favorable economic policies, international rating reviews, and international agreements, particularly the staff-level agreement with the IMF.
The benchmark index had increased by 684.25 points or 0.84% to close at 81,839.86 points.
