the Pakistan Stock Exchange (PSX) plummeted 267 points on Monday as a result of the government’s decision to abolish fuel subsidies and Moody’s decision to change Pakistan’s outlook to negative.
The KSE-100 index fell 267 points to 41,037 points in early trading on the Pakistan Stock Exchange (PSX).
On Friday, the Pakistan Stock Exchange (PSX) dropped about 900 points, showing investor skepticism just hours after the government raised petroleum product prices.
By 4:20 p.m., the KSE-100 index had dropped 925 points to 41,312.11, down from 42,237.91 the day before.
The government’s decision to raise the cost of petroleum goods by Rs30 a liter, as well as electricity prices, is said to be the cause of the stock market’s gloomy trend, according to analysts.
Investors’ confidence was strengthened after the government raised fuel prices on the International Monetary Fund’s (IMF) orders in order to revive the loan programme, but the delay in reaching an agreement between the fund and Pakistan has reawakened investor concerns.
Stock Exchange of Pakistan
Pakistan’s stock exchange, the Pakistan Stock Exchange (PSX), has trading floors in Karachi, Islamabad, and Lahore. On September 8, 2021, MSCI designated PSX as a frontier market.
The Karachi Stock Exchange, Lahore Stock Exchange, and Islamabad Stock Exchange merged to form the PSX on January 11, 2016. There are approximately 375 firms listed on the PSX as of January 2022, with a total market capitalization of PKR 7,756 billion (USD$52 billion).
The US dollar is increasing.
After a recent strengthening of the rupee as a result of the government’s decision to cut gasoline subsidies in order to secure a $1 billion tranche from the IMF, the US dollar gained value in the interbank market on Monday.
According to forex brokers, the US dollar gained Rs1.29 against the rupee, trading at Rs199.21. “The US dollar is trading between Rs198 and Rs203 on the open market,” they alleged.