Political uncertainty leads to 330 points slump in KSE-100 Index

KARACHI: Pakistan stock market came under corrections again after pre and post-budget rally. The market came under profit-taking due to an increase in prices that enticed investors to book some gains. The traders and analysts termed midday corrections with range-bound movement positive for the market.

The benchmark KSE-100 Index was trading at 48,675 points at 12:35 pm, down 50 points from the previous day’s close. The index reached as high as 48,841.47 points and as low as 48,629.03 points during the trade today.

Traders and analysts term the intra-day correction healthy as it will prove positive for strengthening the market. The range-bound trend in market movement and several attempts to break the negative pressure reflects investors’ interest in fresh buying on dips, they added.

On the other hand, worrisome news from the economic front also gave the market an excuse for profit-taking at the current levels. Pakistan’s import bill in the current fiscal year soared by 23 per cent. Import bill during July to May period has reached $50 billion. The main reason for the upsurge in imports has been a sharp rise in imported stuff price of crude oil, palm oil, coal, steel, rubber, cotton and milk powder.

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