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KSE-100 nosedives over 1,700 points as economic turmoil dents investors’ confidence

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1 year ago

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  • PSX’s benchark index continues to fall.
  • Investors jittery over decline in rupee value.
  • PKR trades at 306.05 against USD in interbank.

KARACHI: Bears maintained a firm grip on the Pakistan Stock Exchange (PSX) on Thursday as the benchmark index tanked nearly 4% amid fears over the worsening economic condition of the country.

Investors reacted with panic to the rising rupee-dollar parity, opting to offload shares on fears of a looming economic turmoil.

The KSE-100 index plummeted from the moment trading began and dived more than 1,700 points to fall below the 45,000 mark. Weak investor sentiment is restricting the index from entering positive territory.

The PSX was at 44,475.06 after falling 1,769.49 points or 3.83% at 02:54pm compared to Wednesday’s close of 46,244.55 points.

KSE-100 nosedives over 1,700 points as economic turmoil dents investors’ confidence

Speaking to Geo.tv, Intermarket Securities’ Head of Equity Raza Jafri said that the KSE-100 is facing severe selling pressure as there is a lack of confidence emanating from the weak economy.

“In particular, investors are taking their cues from the depreciating rupee especially as the next review of the International Monetary Fund (IMF) is not due for a few months and there is a little concrete colour on planned investment from the GCC. Value buyers may return if the dip extends as the index is down 8% from its recent high but meaningful valuation rerating needs clarity on politics and the economy return.”

Echoing the sentiments, Capital market expert Saad Ali stated that PSX remains under pressure as the incessant rupee slide has worsened the outlook for inflation ahead of the next MPC in September, in which the central bank can resume raising interest rates.

Ali noted that the financial market is also nervous about the public protests over power tariff hikes and if the interim govt resorts to populist measures to appease the public, it will jeopardise talks with the IMF.

“On a positive note, today MSCI rebalancing is underway, due to which Pakistan is likely to see foreign inflows. But it is not enough to improve market sentiment.”

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February 7, 2025: The value of the Pakistani Rupee (PKR) in relation to the US dollar is unchanged.

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KARACHI: The open market exchange rate between the US dollar and the Pakistani rupee (PKR) was Rs279.4 on February 07, 2025, with a selling rate of Rs281.1. The interbank exchange rate between the US dollar and the Pakistani rupee is Rs 278.45, according to Interbank.

There was no movement in the US dollar (USD) from the previous closure of Rs278.

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The NORINCO Group is invited by CM Sindh to explore opportunities.

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Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

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A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

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In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.

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