Selling Pressure Hits Pakistan Stock Exchange; KSE-100 Index Falls Over 1,000 Points

The KSE-100 stock index of the Pakistan Stock Exchange registered a decline of over 1000 points during Friday’s trading.

Market Overview

It was 10:50 a.m. time when the index of KSE-100 was reduced to 80,758. 21 indicating a decline of one thousand and eighties. 65 points, or 1. 32%. The automobile assemblers, commercial banks, cement, the fertilizer sector, and the oil and gas exploration companies went in the red majestically, and such big stocks as OGDC, PPL, HBL, NBP, and MCB, all were at and below their 5 months moving average line.

Political and Economic Insights

According to the latest BMI which is a Fitch Solutions Company, Pakistan may witness a change in government before the next parliamentary election in 2029. According to the report, this factor is evidenced by the fact that none of the Pakistani prime ministers in the past had managed to complete his term of five years and expects moderate ‘political risk through 2024 and 2025’.

The day before, PSX was in good spirits where the KSE-100 index bounced up by 684 points and testing the levels of 81,839. 86.

Global Impact

Asian markets: Despite the global uncertainties Asian markets are ending the week on a negative note. Some of the negative influences include a tech-sector sell-off because of an intensifying Sino-US trade war, fearing Biden’s re-election, weaker than expected Chinese economic data, and disappointing outcome of the recent third plenum (people’s Congress). More recently currency market intervention has also been conducted by Tokyo which has often led to instabilities in the global marketplace.