Pakistan Stock Exchange sheds 440 points amid dollar price hike
Pakistan Stock Exchange (PSX) has been witnessing a bearish trend since last week and today according to Karachi Stock Exchange (KSE) 100-index of PSX, Pakistan stock market dropped 440 points. The continuous decline of Pakistani rupee against the US dollar which witnessed an all-time low today has badly influenced all financial sectors of the country including the stock market.
Pakistan stock market has observed a continuous devaluation since PTI administration started making reforms according to their understandings. For instance, just during the last couple of days, overall PSX has lost more than 1300 points, despite the $3 billion investment announcement by Qatar.
According to KSE 100-index, the current stock market of Pakistan is trading at a 33750 level (as of writing), down by over 400 points and 1.3% from yesterday’s level of 33440 points. Out of 300 companies dealing in stock markets, share prices of less than 50 companies recorded increase or stability, whereas the remaining large portion observed a major decline.
According to equity sales experts, the absence of the market support fund (which was promised by the PTI government) turned investor sentiments negative. Each and every sector including oil and gas exploration, cement, automobile, and banks have faced sell-off from investors.
It is worth mentioning here that the Economic Coordination Committee (ECC) of the cabinet had approved the market support fund worth Rs. 20 billion back in May 2019. However, the fund has remained inactive until now because the Ministry of Finance has yet not issued the required letter of comfort for releasing the fund.