On Friday, the Pakistan Stock Exchange (PSX) faced intensified selling pressure, with the benchmark index plummeting by over 1,200 points in intraday trading, largely attributed to political uncertainties.
The KSE-100 index fell by 1,206.1 points, or 1.47%, dropping from 81,839.86 to 80,633.76, as reported by the PSX website.
Amreen Soorani, head of research at JS Global, explained to Dawn.com that the recent political noise appeared to trigger profit-taking, particularly given that the PSX had surged more than 28% this year.
Shahab Farooq, director of research at Next Capital Limited, linked the bearish trend to “general profit-taking amid political noise.” He added that confidence could be restored if the upcoming Monetary Policy Committee (MPC) meeting results in a further cut in the policy rate, with July’s inflation expected around 11.5%, and during the corporate results season, provided political risks are set aside.
Yousuf M Farooq, director of research at Chase Securities, noted that the market correction was driven by rising political noise. However, he emphasized that the index had experienced a sharp rally due to a stabilizing economy, lower inflation, improved current account, and anticipated lower interest rates. Farooq anticipated continued stability with the board’s approval of the next International Monetary Fund (IMF) program.
