Pakistan Stock Exchange (PSX) KSE-100 index on Tuesday fell by 1,064 points and the benchmark reached below 6,100 points and reached 60,640.
Stock markets also face trading pressure at the start of a new business week.
On Friday, bears seized control of the Pakistan Stock Exchange (PSX) as deep corrections ensued, with the KSE-100 index experiencing a substantial drop of nearly 1,000 points. Political uncertainty and dwindling foreign exchange reserves were cited as primary triggers for this downturn.
Despite a positive start in the morning, marked by the KSE-100 reaching an intra-day high at 62,995.21 points, the market relinquished the modest gains from the previous day due to heightened political tensions. The bail granted to Imran Khan, founder of Pakistan Tehreek-e-Insaf, in a significant cipher case played a role in this shift.
During the first half of trading, the market remained range-bound. However, investor confidence waned later in the day, influenced by concerns over the increasing power sector circular debt and the rise in industrial power tariffs. The market was further impacted by the recent decline of $136 million in Pakistan's foreign exchange reserves, which fell below $7 billion. Pre-election uncertainty also contributed to the overall negative sentiment.
In the final hour of trading, the index plummeted to the intra-day low at 61,569.13 points. Although there was some recovery before the close of trading, the market ultimately incurred a loss of nearly 1,000 points.
