KARACHI: Bears took over the Pakistan Stock Exchange (PSX) on Friday as the market plunged by more than 1,100 points due to the concerns raised over the current political situation.
The benchmark KSE-100 index fell by 1,168.83 points or 1.43% during the intraday trading to reach at 80,671.03 points as compared to the yesterday’s close of 81,839.86 points.
Speaking to Geo.tv, EFG Hermes Pakistan’s CEO Raza Jafri said, “Concerns over politics may be prompting today’s pressure at the PSX, especially after the recent strong rally.”
However, he added that it is difficult to see disruption at this stage and value buyers may come in if the dip intensifies.
Saad Ali, Intermarket Securities Director of Research, told Geo.tv that he belives the drop was partly due to profit taking after a strong rally since news of the International Monetary Fund (IMF) programme.
“But recent increase in political noise after the Supreme Court decision on reserved seats may have dampened investor sentiment. Some corners of the market may be factoring in a pause in monetary easing in the July MPC.”
The stocks close to an all-time high index on Thursday amid favourable economic policies, international rating reviews, and international agreements, especially a staff-level agreement with the International Monetary Fund.
The benchmark index increased by 684.25 points or 0.84% to close at 81,839.86 points.