- The KSE-100 index ends at 113,520.32, down 1.18%.
- The index drops by 1,360.16 points compared to the previous session.
- An intra -day summit of 115,596.87 reached a sharp decline.
The lowering feeling dominated the exchanges on Monday, the stock market being faced with the pressure of the sale due to concerns concerning interest rate policy, the low results of companies and political uncertainty.
The KSE -100 index of the Pakistan Stock Exchange (PSX) ended at 113,520.32, marking a drop of 1,360.16 points or -1.18% compared to the closing of the previous session of 114,880 , 48.
During the session, the index reached an intraday summit of 115,596.87 before retiring to a hollow of 113,482,22.
“The decline is partly due to market pricing in a drop in interest rates less than 100 BPS at the meeting of the today’s monetary policy (MPC), and low results from a title A major and widely detained, said Muhammad Saad Ali, Research Director on Intermarket Securities Ltd.
He also assigned decline to negative reactions after the announcement of the gas rate increase for captivity power plants.
The uncertainty surrounding the political landscape continues to nail the feeling of investors. Negotiations between the government and the PTI remain an impasse, with contradictory statements on their future.
The president of the PTI, lawyer Gohar Ali Khan, announced that talks were pending due to the lack of government cooperation and delays in the training of a judicial commission for investigation into violent incidents in May and November 2023 .
Commenting on the Bearish perspectives, director general and CEO of Arif Habib Commodities Ahsan Mehanti, said: “The actions are lowering in the midst of a rout in global actions and the low world prices for crude oil.”
“The uncertainty about the outcome of the Government-PTI talks and concerns about the bill for modifying tax laws limiting the ability of non-sequences to buy actions also played a catalytic role in the lower activity”, he added.
The international oil price experienced a 3% drop in week in the middle of concerns about the US President Trump’s plan to stimulate US oil production, further attenuating the feeling of investors.
On the economic front, inflationary pressures have been held, the sensitive price index (SPI) increasing by only 0.52% in annual sliding for the week ending on January 23. Economists now planned that the January consumer price index (ICC) could fall below 3 %, reaching 2.5 %, which will mark the lowest level since November 2015.
Pakistan recently accepted a loan of $ 1 billion from two Middle East banks at interest rates from 6 to 7%, which has shown concerns about the country’s debt burden. At the same time, international oil prices have decreased by 3% of week -long week, partly due to concerns about American production plans.
Textile exports provided a certain relief, increasing by 9.7% in annual sliding in the first half of fiscal year 25, or $ 9.1 billion. Electricity production also increased by 1% in December 2024, offering a marginal boost to economic prospects. However, the SBP exchange reserves decreased by $ 276 million last week, regulating $ 11.5 billion, sufficient to cover more than two months of imports.
Friday, the market experienced a brief recovery, the KSE-100 index winning 842.69 points, or 0.74%, to end at 114,880.48 after touching an intradible summit of 115,779.05. Despite the positive fence of the session, the index posted a week’s drop in week of 392 points or 0.34%.