PSX sheds over 900 points after govt raises fuel prices

KARACHI: The Pakistan Stock Exchange (PSX) on Friday 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, ARY News reported.

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.

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.

Hike in fuel, electricity prices prices

The federal government Thursday increased the prices of petroleum products by Rs30 per litre. The development was announced by Finance Minister Miftah Ismail while addressing a press conference in Islamabad.

After the hike, the price of petrol is set at Rs209.86, diesel at Rs204.15, and kerosene oil at Rs181.56.

National Electric and Power Regulatory Authority (NEPRA) yesterday also approved an Rs7.91 increase per unit of electricity.

SBP reserves decline to $9.7bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) declined by $366 million to $9.723 billion during the week ended on May 27.

According to the central bank’s weekly report, the SBP reserves were recorded at $9,722.9 million, down $366 million compared with $10,088.6 million on May 20.

The country’s total reserves declined to $15.771bn while the holdings of commercial banks were $6.048bn.