PSX down by 1000 points within two hours of trading

By Muhammad JuniadPublished On 05 Jan 2023

The Pakistan Stock Exchange (PSX) has shed more than 1100 points on the first trading day of the week after the Eid-ul-Fitr holidays.

The benchmark KSE-100 index started at 44,840 points at 9 am. However, within two hours of trading, it dropped 1,104 points to 43,736 points.

The market also dropped 408.60 points Friday and closed the week at 44,840 points.

According the experts, the market is under pressure due to the widening current and fiscal account deficit and the depleting foreign exchange reserves.

Moreover, debt repayment and the uncertainty surrounding the talks with the International Monetary Fund for resuming the loan program have also kept the marker on tenterhooks.

Trade deficit widens

Pakistan’s trade deficit widened 65percent during the first 10 months (July-April) of the fiscal year 2021-22 and reached $39.6billion from $23.82billion in the same period of 2020-21.

According to the data from the Pakistan Bureau of Statistics, the country’s exports increased 25.46percent and reached $26.22b in the first ten months of the current fiscal year compared to $20.90b during the same period last year.