PSX falls as KSE-100 index drops by more than 600 points during intra-day trading

Stock market dip 639 points to 80,652.71 during intra-day trading.

The stock market opened today with the index standing at 80,652.71, reflecting a sharp drop of 639.42 points, a 0.79% decrease.

Despite reaching a session high of 81,321.63 points, the market saw a low of 80,591.54 points, indicating continued instability.

Trading volume hit 44,995,684 shares, with a total trade value of Rs. 3.4 billion.

The previous close was at 81,292.13, highlighting the significant loss in momentum.

Earlier, in the past week, Pakistan Stock Exchange (PSX) experienced significant volatility, driven by both economic and political factors. The market soared to an all-time high above 82,000 points, boosted by the approval of a $7 billion Extended Fund Facility (EFF) by the International Monetary Fund (IMF).

This approval was a major positive development for Pakistan, as it provided crucial financial support and unlocked additional financing from other creditors.

However, profit-taking and foreign investor selling quickly reversed the market’s gains, causing a decline of nearly 800 points by the end of the week.

Political uncertainty, along with concerns about the stringent conditions attached to the IMF loan, contributed to the market's fluctuation.

Despite a brief surge following the IMF's approval, investor confidence was shaken by fears over the government's tax reforms and the removal of energy subsidies, which are part of the IMF's requirements.

By the end of the week, the KSE-100 index had dropped 782 points, closing at 81,292, with a week-on-week decline of 0.95%.

Average trading volumes also fell by 17%, while foreign investors sold off $12.5 million worth of stocks, continuing the trend from previous weeks.

Additionally, Pakistan received financing assurances from China, Saudi Arabia, and the UAE, further bolstering its economic outlook.

Meanwhile, key sectors such as power generation, oil and gas, and technology contributed negatively to the overall market performance.

Despite this, the Pakistani rupee appreciated slightly, and the State Bank of Pakistan's reserves saw a modest increase.