Economic turmoil
\n\u201cInvestors are taking their cues from the depreciating rupee,\u201d says market analyst
\nKARACHI
\nBears maintained a firm grip on the Pakistan Stock Exchange (PSX) on Thursday as the benchmark index tanked over 2% amid fears over the worsening economic condition of the country.
\nInvestors reacted with panic to the rising rupee-dollar parity, opting to offload shares on fears of a looming economic turmoil.
\nIn the interbank market, the rupee closed at 305.54 against the dollar showing a depreciation of 0.36%.
\nThe KSE-100 index plummeted from the moment trading began and dived more than 1,700 points to fall below the 45,000 mark during the intraday trade. Weak investor sentiment is restricting the index from entering positive territory.
\nThe PSX was at 44,475.06 after falling 1,769.49 points or 3.83% at 02:54pm compared to Wednesday\u2019s close of 46,244.55 points. However, the market recovered a bit and ended the day just a little over the 45,000 mark.
\nAt the end of the day\u2019s close, the market stood at 45,002.41 falling 1242.14 points or 2.69% compared to the previous day\u2019s close.
\nIntermarket Securities\u2019 Head of Equity Raza Jafri said that the KSE-100 is facing severe selling pressure as there is a lack of confidence emanating from the weak economy.
\n\u201cIn particular, investors are taking their cues from the depreciating rupee especially as the next review of the International Monetary Fund (IMF) is not due for a few months and there is a little concrete colour on planned investment from the GCC. Value buyers may return if the dip extends as the index is down 8% from its recent high but meaningful valuation rerating needs clarity on politics and the economy return.\u201d
\nEchoing the sentiments, Capital market expert Saad Ali stated that PSX remains under pressure as the incessant rupee slide has worsened the outlook for inflation ahead of the next MPC in September, in which the central bank can resume raising interest rates.
\nAli noted that the financial market is also nervous about the public protests over power tariff hikes and if the interim govt resorts to populist measures to appease the public, it will jeopardise talks with the IMF.
\n\u201cOn a positive note, today MSCI rebalancing is underway, due to which Pakistan is likely to see foreign inflows. But it is not enough to improve market sentiment.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Economic turmoil \u201cInvestors are taking their cues from the depreciating rupee,\u201d says market analyst KARACHI Bears maintained a firm grip on the Pakistan Stock Exchange (PSX) on Thursday as the benchmark index tanked over 2% amid fears over the worsening economic condition of the country. Investors reacted with panic to the rising rupee-dollar parity, opting […]<\/p>\n","protected":false},"author":2,"featured_media":312795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[325],"class_list":{"0":"post-352895","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news","8":"tag-kse"},"yoast_head":"\n