The concerns at both political and economic fronts and rupee depreciation on Monday triggered Pakistan Stock Market’s plunge as the market shed 1328 points or 3.39 per cent of market capitalisation.
The benchmark 100 index of PSX closed down at 37898 as stocks underwent another round of battering on the market.
On Monday, the market opened in the green zone and gained some 51 points before the all-around fall started. At one point during the trading, market shed 1456 points to dip at 37767. However, it managed to gain some losses in the last moment of the trading and closed 1328 points down at 37898.
Analysts say that the lack of clarity on part of the government is taking its heavy toll on the market. No categorical announcement from the government especially Finance Minister regarding IMF programme and the declining forex reserves are negatively impacting the shares’ market.
Although yesterday the Prime Minister hinted at going back to the International Monetary Fund (IMF) for a bailout to fix the external accounts woes, investors want a clear statement from the government.
During Monday’s trade some 113,816,590 shares changed hands on the bourse. Low volume and foreign sales remained salient features of the day.
Senior analysts and Chief Executive Officer (CEO) of Arif Habib Corp Ahsan while commenting on the market situation said that panic selling continued amid higher trades at PSX on investor concerns for dismal economic outlook and global equities sell-off.
He said that reports of record Rs1.55trn pending circular debt, foreign outflows, uncertainty over outcome of FATF compliance review meetings on action plans, record fall in forex reserves, and fears over likely IMF policy measures on further hike in gas and power tariff, surge in interest rates and rupee depreciation played a catalyst role in record fall.