KARACHI: The Pakistan Stock Exchange (PSX) started the day on a negative note, plunging over 1,100 points on “concerns” over the country’s political situation.
The benchmark KSE-100 index eased to 80,671.03 points during intraday trading, down 1,168.83 points or 1.43% from yesterday’s close of 81,839.86 points.
Speaking to Geo.tv, EFG Hermes Pakistan Managing Director Raza Jafri said, “Today’s pressure on the PSX may trigger political concerns, especially after the recent strong rally.”
However, he added that it is difficult to see a disruption at this stage and that if the dip deepens, value buyers may come.
Saad Ali, director of intermarket securities research, told Geo.tv that he believed the decline was partly due to profit-taking after a strong rally since news of the International Monetary Fund (IMF) program.
“But the recent uptick in political noise following the Supreme Court ruling on reserved seats may have dampened investor sentiment. Some corners of the market may be weighing on the pause in monetary easing at the July MPC.”
Stocks neared an all-time high on Thursday, buoyed by favorable economic policies, international credit rating reviews and international agreements, notably a staff-level agreement with the International Monetary Fund.
The benchmark index rose by 684.25 points or 0.84% to close at 81,839.86 points.
