KARACHI: The Pakistan Stock Exchange (PSX) witnessed a significant decline as it plummeted over 1,100 points due to rising concerns over the political climate in the country.
The benchmark KSE-100 index dropped to 80,671.03 points during intraday trading, a decrease of 1,168.83 points or 1.43% from the previous day’s close of 81,839.86 points.
Raza Jafri, CEO of EFG Hermes Pakistan, commented to Geo.tv: “Political concerns seem to be driving today’s pressure at the PSX, particularly after the recent strong rally.” He also noted that while disruption seems unlikely at this stage, value buyers might step in if the decline continues.
Saad Ali, Director of Research at Intermarket Securities, attributed the drop partly to profit-taking following a robust rally fueled by the news of the International Monetary Fund (IMF) programme. He added, “The recent surge in political noise following the Supreme Court decision on reserved seats may have dampened investor sentiment. Some market players might also be anticipating a pause in monetary easing in the upcoming July MPC.”
The benchmark index had recently neared an all-time high on Thursday, bolstered by favorable economic policies, international rating reviews, and agreements, particularly a staff-level agreement with the IMF. It had increased by 684.25 points or 0.84%, closing at 81,839.86 points.
