After experiencing volatility last week, the Pakistan Stock Exchange (PSX) experienced a dip on Monday with the KSE-100 index losing 1141 points during intra-day trading.
The 1.16% percent decline saw the PSX dip below the critical 78,000-point mark reaching 77,084.48 points.
The market’s movement was largely influenced by mixed investor sentiment over the growing political uncertainty, policy rate cuts, rating decisions of global agencies, and improved economic data.
The PSX had reached an unprecedented all-time high of the 81,000-point mark last month.
Earlier on Wednesday, PSX dropped nearly 750 points in a highly bearish activity fuelled by investor concerns over the affirmation of a “CCC+” rating by S&P Global, which underscored the country’s heavy reliance on foreign assistance for meeting debt obligations amid political instability.
The following day, the market remained under pressure when investors resorted to profit-booking primarily due to the narrowing of the banking spread and uncertainty about the rollover of $15 billion worth of Chinese energy debt.
Bulls staged a comeback on Friday as the KSE-100 rose around 500 points, boosted by improved economic data and optimism about a further reduction in the SBP policy rate.
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