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

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2 years 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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Business

Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

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3 days ago

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Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

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As the MPC meeting draws closer, stocks rise.

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3 days ago

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On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

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FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

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4 days ago

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The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

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