Bears take hold of PSX as shares decline 1,200 points in intraday trade – Business

Bears took control of the trade floor at the Pakistan Stock Exchange (PSX) on Monday as shares continued their downward trajectory by 1,200 points in intraday trade.

The benchmark KSE-100 index declined by 1,207.25 points, or 1.07 per cent, to stand at 112,044.41 points from the last close of 113,251.66 at 1:32pm.

Sana Tawfik, head of research at Arif Habib Limited, attributed the downward trajectory “selling pressure” in the market.

“Due to the Ramazan factor, low volumes also being observed,” she added.

According to Insight Securities Ltd, the market posted a slightly negative performance in February.

The market continued its bearish trend for the second month in a row, primarily due to anxious selling by investors in February. This uncertainty stemmed from concerns about tax reforms and the outcome of the upcoming first review of the $7 billion Extended Fund Facility by the International Monetary Fund (IMF).

Last week, the equity investors had remained cautious throughout the month and opted to take profits at available margins. A successful IMF review would lead to the release of the second tranche, which the country direly needed to meet its external debt repayment obligations.

The State Bank of Pakistan’s (SBP) foreign exchange reserves had also recorded an uptick of $21m to $11.2bn while the rupee depreciated slightly by 0.04pc, closing at Rs279.57 against the dollar.

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