Bloodbath in Pakistan Stock Exchange
The Pakistan Stock Exchange (PSX) has experienced persistent downward pressure for the fifth consecutive session, as the benchmark KSE-100 index endured a significant decline of more than 1200 points on Thursday.
Continuing its bearish trajectory, the KSE-100 index witnessed a substantial drop of 1242 points, settling at 45,002. This marked a considerable decrease from its previous day's closing value of 46,244.55.
Experts in the field of economics attribute the decline in the KSE to a lack of clarity surrounding both political and economic matters.
The market is grappling with heightened selling pressure, primarily driven by the prevailing economic uncertainty and the persistent devaluation of the national currency, the rupee.
Analyst Ahsan Mehanti noted, "The bearish closure was significantly influenced by statements from the interim finance minister, who indicated limited fiscal capacity to provide relief on electricity bills and expressed concerns about the unresolved circular debt crisis within the power sector."
It's pertinent to highlight that the market witnessed a sharp downturn when rumors emerged regarding an impending emergency meeting by the State Bank of Pakistan. Speculations suggested that the meeting might result in an interest rate hike of up to 300 basis points.