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

KARACHI: Pakistan Stock market failed to break the bearish spell for the third day in row as some worrying news from economic front and increase in COVID-19 infection rate kept investors cautious. Investors preferred to book profit and lighten portfolios to go through the approaching weekend.

The benchmark KSE-100 Index after remained under pressure around 48,500 points levels in the last two days started the trade with negative sentiments today. The market lost 100 points in the first few minutes of the trade and remained in negative territory with very weak attempts of recovery during intraday trade. KSE-100 Index was trading 211
points down at 48,269 at 2pm.

Traders and analysts said the market sentiments were low today due to some disturbing news regarding Pakistan’s negotiation with International Monetary Fund (IMF). On the other hand, the increase in COVID-19 infection rate also made investors cautious that led to the extend in the bearish spell.

The coronavirus positivity ratio across Pakistan has started to rise again, reaching the 3 per cent mark over the past 24 hours. According to the National Command and Operation Centre (NCOC), 46 more people lost their lives, taking the nationwide death toll to 21,874.

Meanwhile, the sixth economic review talks between Pakistan and the International Monetary Fund (IMF) have ended without any agreement; as a result, the next loan installment to Pakistan will be delayed.

Federal Minister for Finance and Revenue Shaukat Tarin categorically said that the government will not put an additional burden on the poor segments of society by raising taxes on power and gas tariffs. The FM said that the talks with the IMF will bore results eventually as the fund will review Pakistan’s progress in September this year.

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