According to the Forex Association of Pakistan (FAP), the rupee had depreciated to Rs305.80 in the interbank market against the dollar.
PSX bloodbath: KSE-100 index plunges over 1200 points amid economic woes
- By Anjum Wahab -
- Aug 31, 2023
AA
ResizeKARACHI: The Pakistan Stock Exchange (PSX) remained under pressure for fifth straight session as the benchmark KSE-100 index lost over 1200 points on Thursday.
The KSE-100 index maintained its bearish trend, dropping by 1242 points to 45,002, down from yesterday’s close of 46,244.55.
According to economic experts, the fall in the KSE was due to a lack of clarity on politics and the economy.
The market is facing selling pressure due to economic uncertainty and the unrelenting depreciation of the rupee.
“The caretaker finance minister’s assertion for lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in bearish close,” said analyst Ahsan Mehanti.
It is worth mentioning here that the market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps.
On the other hand, the rupee remained under pressure and slid further against the US dollar in the open market on Tuesday, trading above Rs322 to the greenback.