The Pakistan Stock Exchange (PSX) on Tuesday fell over 800 points in intraday trade amid uncertainty on the political front.
At 11:59 am, the benchmark KSE-100 index fell 742 points or 1.81 percent to 40,228 points.
However, after a few minutes, the drop crossed the 800 mark. The market was hovering at 40,164 points.
Speaking to JEE News, AA Commodities Director Adnan Agar said the stock market is reacting to all the “bad political news”.
“Players are looking for political stability before taking new positions in the market,” he said, adding that any positive news on the political front or positive developments on the IMF program should restore investor confidence. will
Pakistan and international lenders are negotiating with Islamabad on the ninth review “production”. However, differences between the two sides still persist, making it difficult to reach consensus on a staff-level agreement to complete the 9th review under the $7 billion Extended Fund Facility (EFF).
Agar further highlighted that market players are also worried about the future of the Shehbaz Sharif-led coalition government considering the current political developments.
The federal government has been alerted after Imran Khan announced the dissolution of the Punjab and Khyber Pakhtunkhwa assemblies this week.
“Furthermore, the continued depreciation of the rupee against the US dollar is adding to the downward trend,” he said, adding that investors were unhappy with how Finance Minister Ishaq Dar was handling the rupee-dollar parity. are
