The Pakistan Stock Exchange (PSX) witnessed a significant decline on Monday as the KSE-100 index fell by 1,141 points during intraday trading, settling at 77,084.48 points from the previous close of 78,225 points.
This 1.16% drop pushed the index below the crucial 78,000 mark.
The market’s downturn was primarily driven by mixed investor sentiment influenced by increasing political uncertainty, anticipated policy rate cuts, decisions by global rating agencies, and positive economic indicators.
Last month, the PSX had reached an all-time high of 81,000 points. However, volatility returned last week when the index dropped nearly 750 points on Wednesday.
This decline was triggered by investor concerns over the reaffirmation of a “CCC+” rating by S&P Global, highlighting Pakistan’s dependency on foreign aid to meet its debt obligations amidst political turmoil.
On Thursday, the market continued to struggle as investors engaged in profit-taking due to narrowing banking spreads and uncertainty surrounding the rollover of $15 billion in Chinese energy debt.
Despite these challenges, the bulls made a brief comeback on Friday, with the KSE-100 index rising by approximately 500 points. This rebound was fueled by improved economic data and optimism regarding further reductions in the State Bank of Pakistan’s policy rate.