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Wednesday, February 8, 2023

KSE continues the nosedive, loses 911 points

For the continuous 4th day in the week, the Pakistan Stock Exchange (PSX) closed the session of the week in red, with the benchmark KSE-100 Index diving below the 43,000-mark on closing

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KSE has fallen 911.92 points since the start of the session today.  Stock Market went bearish on Monday as investors sold their shares in the wake of political uncertainty. It caused KSE-100 to go down by almost 800 points that day. On the fourth day of the week, KSE is taking dive continuously.

Read More: Political uncertainty swipes off 786 points from KSE-100

On Wednesday, the PSX had lost 531.23 points, or 1.20pc, breaking the 44,000 psychological support and settling at 43,691.68 points.

The PSX closed a little below 43000 points for the day. Starting the day at 43,691, the market has come down almost 1000 points.

The highest point during the day was around 11:10 AM when the stock exchange touched 43,891 points. According to Pakistan Stock Exchange, the top declines were mostly investment banks, modaraba companies, and growth funds.

This all began after the election of Yousaf Raza Gillani into the senate and the situation is expected to continue until the elections take place tomorrow, on the 12th of March 2021.

Even the infamous The Resource Group (TRG), the venture capital company which has experienced explosive growth during the last nine months has seen a drop of 7.5% of its share price, being the second most active stock in the market. However, the reasons for TRG’s drop can be other than the political too.

The other major reason for the risk-averse actions of the investors is the news of new taxes and the removal of tax incentives given to the construction sector and other industries like IT, mutual funds, etc. This would explain why Modarabas, investment companies are losing their investments.

Additionally, as already reported, the scare of inflation when Ramadan is right around the corner is scaring people. The oil prices have gone up to $70 and this will have a trickle-down effect on every industry as everything depends on power, and our power generation is dependent on oil. This will also be impacting transportation hence, increasing the price of every commodity.

Read More: High global oil prices may trigger Pakistan’s economic crisis

The interest rates are rising as well, making borrowers, a majority of investors, scared, thus leading to the nosedive of KSE, which was doing much better before.