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Monday, July 15, 2024  
08 Muharram 1446  

Stocks plunge over 1,200 points as bears take control

Development comes as rupee continues to fall against rupee in interbank market
Many analysts have blamed the rising economic concerns among investors for such a slide. AFP/File
Many analysts have blamed the rising economic concerns among investors for such a slide. AFP/File

The benchmark 100-index shed over 1,200 points in intraday trade on Thursday, as bears were in control of the Pakistan Stock Exchange market.

The index slipped into the negative territory and settled at 45,002.41, down 1,242.14 points or 2.69% from the preceding session. The stock fell to 44,459.62 during the intra day where the index lost over 1,700 points.

 Screengrab via Pakistan Stock Exchange website.
Screengrab via Pakistan Stock Exchange website.

On Wednesday, the KSE-100 Index fell for the fourth consecutive session. Many analysts have blamed the rising economic concerns among investors for such a slide.

Index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and refinery sectors were trading in the red.

Selling was especially witnessed in the energy and banking sectors.

The market was facing selling pressure due to the falling rupee and lower-than-expected June financial result, Topline Securities CEO Muhammad Sohail told The Express Tribune on Wednesday.

Market talk suggests that the economic, social and political unrest was weighing on capital markets, he added.

Investors have expressed concerns over the fall of the rupee against the dollar and high fuel prices.

Many experts were of the view that a policy rate hike was expected this month in an effort to tame inflation.

Market analyst Abdullah Umer blamed the currency depreciation for the negative sentiment in the market.

“The participants are unable to identify when the exchange rate would stabilise. The depreciation has flared up concerns of higher energy tariffs and increased external debt payments,” market analyst Abdullah Umer told Business Recorder.

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