- The KSE-100 index drops from 1,510.71 points, closed to 112,745.01.
- The stock market affects an intrajournal minimum of 112,681.33.
- PSX sees a high sale pressure, the index drops by 113,000.
The capital market underwent high sales pressure on Monday while volatility in the world market, profit and political uncertainty weighed on the feeling of investors.
Institutional investors have reserved profits, while a lack of new positive triggers and concerns concerning the political climate maintained the prudent feeling.
The KSE -100 index of the Pakistan Stock Exchange (PSX) plunged 1,510.71 points, or -1.32%, closing at 112,745.01, down compared to the closing of the previous session of 114 255.72. The index reached an intraday summit of 114,620.79 before withdrawing at least 112,681.33.
Pakistan Pakistan Pakistan Benchmark Kse-100 index of Pakistan has recorded a gain of 365.07 points (0.32%), reaching an intra-day summit of 114,620.79, but then fell, touching A minimum of 112,681.33, reflecting a drop of 1,574.39 points, or -1.38%, from the closing of the previous session of 114,255.72.
Market analysts have linked the drop to external pressures, with Samiullah Tariq, research manager at Pak-Kuwait Investment Company, saying: “Lower in international markets, due to prices”.
The world markets have prepared for new troubles after US President Donald Trump has imposed radical prices in Canada, Mexico and China, raising fears of a full -fledged trade war.
The affected countries have promised immediate reprisals, creating uncertainty in the financial markets around the world. Investors also fear that climbing tariff disputes could mitigate business benefits, trigger inflationary pressures and disrupt expectations of interest rates in the United States.
Last week, the global financial landscape was also confronted with pressure after introducing the Chinese AI model, which sparked a sale in technological actions. The combination of trade tensions and technological disturbances has led to an increase in global stock market volatility, investors adopting a waiting approach to assess the impact on financial growth.
Muhammad Saad Ali, Research Director at Intermarket Securities Ltd., noted that the realization of the profits of institutional investors was a key factor for the decline, saying: “The profit taking takes place on the market, most institutional investors Reserve profits while there is a lack of positive triggers.
He also added: “At the same time, liquidity dries up while the State Bank has almost completed its monetary softening and, once again, there is a lack of fresh and positive triggers.”
Adding to uncertainty, the PTI declared on February 8 on February 8 to protest against alleged electoral fraud during the general elections of 2024. He announced a protest campaign across the Sindh from February 1 to February 8 compared to What he describes the rigging of the elections.
The Pakistan State Bank (SBP) reduced its 100 basic point of 12% basic policy rate on January 27, said the Governor of the Central Bank, Jameel Ahmed drifting inflation. Market analysts do not expect additional monetary assistance after the last cuts, attenuating the confidence of investors.
Meanwhile, with the aim of reducing electricity prices and stabilizing the energy sector, the government has launched a plan to convert circular debt (CD) into public debt. This decision should reduce RS3.37 electricity prices per unit while restructuring $ 16.26 billion in energy -related debt.
The government aims to refinance and extend the mandate to reimburse loans from the energy project, including those of the Hydel, coal, wind, solar and nuclear power plants. In doing so, he hopes to facilitate the financial burden of consumers and improve the sustainability of the electricity sector.
An important part of the plan is to reproduce the circular debt and convert it into sovereign debt. According to estimates, this transition will lead to a reduction in RS3.78 per kWh of electricity prices after tax.
The KSE-100 index continued its upward trajectory for a second consecutive session on Friday, driven by solid expectations of business profits and hopes of additional monetary easing.
Investors have embarked on aggressive purchases, which raised the KSE-100 reference index of 1,049.32 points, or 0.93%, to end at 114,255.72. The index reached an intraday summit of 115,106.99, reflecting sustained confidence in investors, while the lowest level recorded during the session was 113,692.87.