Domestic capital markets expect a further hike in key policy rate by central bank to control rising inflation
\nKARACHI
\nThe Pakistan stock market slumped on Tuesday along with record rupee depreciation, as domestic capital markets expect a further hike in the key policy rate by the central bank to control rising inflation.
\nPakistan Stock Exchange\u2019s (PSX) benchmark KSE-100 Index dropped around 1.6%, or 850 points, to 46,625 points at about 2pm on Tuesday.
\nThe decline is seen after Pakistani currency posted a fresh loss of around Rs1 to a new record low near Rs303 against the US dollar at midday.
\nEarlier, PSX hit a six-year high at over 48,600 points in the first week of August.
\nPak-Kuwait Investment Company Head of Research Samiullah Tariq said the market was going down amid \u201cexpectation of an increase in interest rates\u201d. Topline Securities CEO Muhammad Sohail said the market faces selling pressure due to the \u201cfalling rupee and lower than expected June financial result\u201d.
\nMarket talk suggests that the economic, social and political unrest is weighing on capital markets.
\nThe ongoing protests by the business community and domestic consumers against inflated power bills, rising inflation, and a likely hike in SBP interest rate continue to impact the economic outlook.
\nThe situation is impacting the income of companies listed on the PSX, forcing some investors to sell stocks at falling prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
Domestic capital markets expect a further hike in key policy rate by central bank to control rising inflation KARACHI The Pakistan stock market slumped on Tuesday along with record rupee depreciation, as domestic capital markets expect a further hike in the key policy rate by the central bank to control rising inflation. Pakistan Stock Exchange\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":352583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-352548","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n