Pakistani Stocks, Rupee Plunge Amid Deteriorating Economic, Political Situation

Pakistani Stocks, Rupee Plunge Amid Deteriorating Economic, Political Situation

by Raheela Nazir

ISLAMABAD, May 17 (NNN-XINHUA) – Pakistani stocks and rupee plunged on the first day of the trading week, yesterday, in the backdrop of a worsening economic and political situation in the country.

The fall in equities and the rupee was attributed to an unsettled political situation, depleting foreign exchange reserves, a balance of payment crisis, and uncertainty over the revival of the International Monetary Fund (IMF) loan programme, which could improve the country’s balance of international payments, according to the economic experts.

In order to get the IMF programme, the incumbent government has to remove subsidies on petroleum products and electricity, as per IMF conditions, but Federal Minister for Finance and Revenue, Miftah Ismail said on Sunday that, “the government is not increasing petroleum product prices for the time being.”

The Pakistani rupee continues to sink yesterday, hitting a historic low value of 194 against the U.S. dollar in the inter-bank market.

The rupee had closed at 192.53 on Friday. However, it shed 1.70 rupees against the U.S. dollar to touch 194.23 rupees yesterday, according to the central bank.

Similarly, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-Index dipped by 1.88 percent or 819.14 points, to close at 42,667.32 points yesterday, when compared with 43,486.46 points reported on Friday, according to the data shared by PSX.

The trading board presented a red look yesterday, as the KSE All-Share Index decreased by 1.71 percent or 506.00 points, to close at 29,067.73 points, the KSE 30-Index slid by 1.99 percent or 329.05 points to end at 16,212.92 points, the KMI 30-Index shed 2.35 percent or 1,660.57 points to conclude at 68,861.78 points, whereas the Islamic All-Share Index deflated by 2.03 percent or 434.43 points to finish the trading session at 20,922.27 points.

Also, the trading session witnessed bearish trends, which made the main index travel in a range of 1,111.07 points. During the course of the trading day, the key index touched an intraday peak of 43,486.46 points against an intraday low of 42,375.39 points.

Market volumes were recorded at 250.328 million shares yesterday. The turnover was 20.29 percent or 42.228 million shares lower, compared with 208.10 million shares traded hands on Friday.

Among 351 active scrips yesterday, the prices of 67 issues closed in the green ink, 269 ended down in the bearish lap, whereas the values of 15 other listed companies remained unchanged.

Lotte Chemical Pakistan Limited, Pakistan Refinery Limited, and Cnergyico PK Limited, were the top traded companies with turnovers of 18.143 million shares, 18.068 million shares, and 14.168 million shares, respectively.– NNN-XINHUA  


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