The Pakistani stock market remained jittery in the outgoing week and fell 4.8% or 1,934 points at 38,562, which was the largest decline in 67 weeks since August 18, 2017, according to JS Global.
Bears dominated trading during the week amid concerns over falling foreign currency reserves, weak macroeconomic indicators, tight monetary policy and plunging commodities’ prices.
On Monday, the market got off to a negative start, plunging 1,335 points due to sudden depreciation of the rupee against the greenback and higher-than-expected increase in key interest rate. However, bulls rushed in breifly the very next day after prime minister’s assurance of devising a communications mechanism with the State Bank of Pakistan to prevent confusion in the future about rupee depreciation.
However, the bullish sentiments proved shortlived and the index again turned negative amid rumours of finance minister’s resignation. Negative sentiments were broadly driven by the lack of clarity on any financial support from China and the UAE. It is now expected that China may offer a $2-billion loan.
Weaker international oil prices and the rupee’s free fall kept the benchmark KSE-100 index under severe pressure.
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