The Pakistan Stock Exchange (PSX) experienced a significant decline on Friday, with the benchmark KSE-100 index falling by 1,168.83 points (1.43%) to reach 80,671.03. This drop was attributed to concerns over the current political situation.
Analysts weighed in on the decline, with EFG Hermes Pakistan’s CEO Raza Jafri suggesting that political concerns may be driving the pressure on the PSX. However, he noted that disruption is unlikely at this stage, and value buyers may emerge if the dip intensifies.
Intermarket Securities Director of Research Saad Ali attributed the drop to profit-taking after a strong rally following news of the International Monetary Fund (IMF) program. He also cited increased political noise and potential pause in monetary easing in the July MPC as contributing factors.
The PSX had previously reached an all-time high on Thursday, driven by favorable economic policies, international rating reviews, and agreements, including a staff-level agreement with the IMF. The benchmark index had increased by 684.25 points (0.84%) to close at 81,839.86.
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