The bears were in strong control of the Pakistan Stock Exchange (PSX) on Monday as the KSE-100 index benchmark traded more than 1,300 points in intraday trading, while the dollar continued to fly to record levels against the rupee.
According to the PSX website, the KSE-100 Index opened at 44,840.81 points, making a high of 44,841.41 points before falling sharply. The bourse took short corrections but eventually continued its decline and plummeted to 43,506.34 slightly before 1pm, representing an intraday drop of 1335.07 points.
Raza Jafri, head of Equities at Intermarket Securities, said the market was under pressure due to a reduction in foreign reserves and delays in re-launching the International Monetary Funds (IMF) program among other things.
“The government seems to have, so far, done nothing when it comes to securing funding from friendly countries. Pressures on global stock markets also undermine sentiment,” he explained, warning that in the near future the market would track progress. foreign reserves, therefore, good development here before can help stop the slide.
Khurram Shehzad, CEO of Alfalah B-Tech, shared a similar view.
“No development in funding from Saudi Arabia, the UAE and the IMF is a concern for investors,” he said, adding that the Shehbaz government ‘refusal to transfer fuel subsidies could also be one of the reasons for the “PSX bloodbath”.
Rupee depreciates as the dollar reaches R188.05
At the time, the dollar was trading at Rs188.5 on the interbank midday Monday as the rupee dropped to Rs1.25, according to the Forex Association of Pakistan. The open market value of the greenback was Rs187.8 at the same time.
The highest dollar against the rupee remains Rs189.25 – the level that was observed on April 1 when the political turmoil was at its peak. Immediately after the change in government, it dropped in the face of a strong rupee but the correction quickly disappeared steam and now the greenback is back to its high record.
Malik Bostan, chairman of the Pakistan Forex Trading Association, described the rise in the value of the dollar today in foreign oil prices.
“We hope the rupee will cool down in the last week of May,” he said, urging the Minister of Finance to immediately publish details of the package received by Pakistan from Saudi Arabia.
During a visit by Prime Minister Shehbaz Sharif to Saudi Arabia earlier this month, Saudi Crown Prince Mohammed bin Salman agreed to discuss extending the $ 3 billion loan term to help the new Pakistani government deal with the economic crisis.
Saudi Arabia has reaffirmed its continued support for Pakistan and its economy, including talks to increase the $ 3 billion deposit with the central bank by increasing time or otherwise, and exploring ways to improve funding for petroleum products and support economic recovery to benefit. of Pakistan and its people.