PSX sheds 267 points amid lack of confidence from investors

KARACHI: Pakistan Stock Exchange (PSX) on Mon day continued its declining trend and shed 267 points following the government’s decision to reverse fuel subsidies and Moody’s decision to change Pakistan’s outlook to negative, ARY NEWS reported.

The KSE-100 index after losing 267 points traded at 41,037 points during the early trading in the Pakistan Stock Exchange (PSX).

The Pakistan Stock Exchange (PSX) on Friday also shed over 900 points, depicting a lack of confidence from investors in the market, just hours after the government raised the prices of petroleum products.

The KSE-100 index shed 925 points and plunged to 41,312.11 points against the previous day’s close of 42,237.91 by 4:20pm.

According to analysts, the bearish trend in the stock market is a result of the government’s decision to increase the prices of petroleum products by Rs30 per litre and raise in electricity prices.

Read More: Moody’s changes Pakistan’s outlook to negative from stable

The confidence of the investors was boosted after the government previously raised fuel prices on the directions of the International Monetary Fund (IMF) for the revival of the loan programme, but the delay in an agreement between the fund and Pakistan is again creating uncertainty among the investors.

US dollar gains value 

After a recent strengthening of the rupee following the government’s decision to reverse fuel subsidies to secure a $1 billion tranche from the IMF, the US dollar on Monday gained value in interbank.

According to forex dealers, the US dollar rose by Rs1.29 against the rupee and traded at Rs199.21. “The US dollar in open market is trading between Rs198 and Rs203,” they said.