KSE-100 index sees 755.75 points vanish in opening session

By Muhammad JuniadPublished On 05 Jan 2023

Record fuel prices and a negative outlook by credit ratings agency Moody’s led to a massive 700 point slump in the Karachi Stock Exchange 100 Index on Friday morning.

After another day when the index had slid 500 points, the market opened on Friday at 42,237.91 points.

However, the overnight news of prices of petroleum being raised by another Rs30, Moody’s giving a negative outlook for the country’s economy and foreign exchange reserves dipping below the $10 billion mark saw any investor confidence disappear.

The opening session saw the index creep up 72.26 points before it started to fall.

It fell below the 42,000 points psychological barrier.

The index, though, could not arrest the decline as it touched a low of 41,482.16 points, down by 755.75 points over the previous day.

Earlier, market sources had told SAMAA Money’s Wakil-ur-Rehman that investors have become cautious ahead of the federal budget, set to be announced next week. This has sparked frequent selloffs, not only on Thursday but also on Wednesday and Tuesday, when the PSX witnessed extremely volatile sessions.