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PSX sinks below 40,000 barrier, stocks plunge to lowest level since July

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A stockbroker reacts as monitor share prices during a trading session at the Pakistan Stock Exchange (PSX) in Karachi. — AFP/File
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The Pakistan Stock Exchange (PSX) sunk on Tuesday below the 40,000-mark – its lowest level since July 2022 – as the benchmark KSE-100 Index dropped by over 1,000 points during intra-day trade, owing to political uncertainty.

The benchmark KSE-100 index dropped by 806.21 points, or 1.97%, to settle at 40,164 points at 12:36pm.

PSX sinks below 40,000 barrier as stocks plunge to lowest level since July 2022

However, it was hovering at 39,935 points an hour later, down 1,034 points or 2.53%, at 1:59pm during intra-day trade.

Speaking to Geo.tv, AA Commodities Director Adnan Agar said the stock market is reacting to all “bad political news”.

“Players are looking for political stability before assuming fresh positions in the market,” he said, adding that any positive news on political front or positive development regarding IMF programme will reinstate investors confidence.

Pakistan and the global lender have been holding discussions with Islamabad on the ninth review “productive”. However, differences between both the sides still persist making consensus harder to strike on a staff-level agreement for completion of the 9th review under $7 billion Extended Fund Facility (EFF).

Agar further highlighted that market players are also concerned about the future of the Shehbaz Sharif-led coalition government while taking into account the current political developments.

The federal government has been thrown off guard after Imran Khan announced that he will be dissolving the Punjab and Khyber Pakhtunkhwa assemblies this week.

“Moreover, constant depreciation of rupee against the US dollar is adding fuel to the downtrend,” he said, mentioning that the investors are unhappy with how Finance Minister Ishaq Dar is handling the rupee-dollar parity.

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