Pakistani equities started the day on a downbeat note, with the KSE-100 index down 32.13 points, or 0.07 percent, in the first hour of trade.
On Friday, the Pakistan equities market went on a roller-coaster ride, with the first session reporting spectacular gains in an oversold market, but the second session seeing a correction due to the local currency’s free-fall. The rupee’s volatility, the regulator’s acceptance of a power rate rise, and the uncertainty surrounding the parameters of the relaunched IMF program all contributed to the bourse’s gloomy finish on Friday.
According to analysts, today’s stock market began under pressure due to the rupee’s fragility and rising government bond rates. Foreign withdrawals, a rise in the industrial electricity tariff, and uncertainty regarding the IMF program’s restart all contributed to the market’s downward trend.
The possibility that the State Bank of Pakistan may raise the policy rate by another 125 basis points, pushing interest rates into double digits, is also fueling the negative trend on the local stock exchange.