The bearish feeling continued on the exchange floor in the Pakistan bag on Thursday with actions that fell more than 1,000 points, one day after India announced a series of diplomatic measures addressed to Pakistan after a deadly in busy assumption that resulted in the death of more than two dozen tourists.
The KSE-100 reference index decreased by 1,086.51, or 0.93 percent, to stop at 116,139.63 from the previous closure at 11:13 am
Yousuf M. Farooq, research director of Chase Securities, said: “The market opened more amid the fear of increasing tensions between Pakistan and India.”
“However, positive corporate gains have supported a partial recovery,” he said.
“In the future, the feeling of investors will depend on the trajectory of relations between India-Pakistan, the next corporate results and the decision of the monetary policy that is expected in early May.”
In macroeconomic indicators, he stressed that inflation was in a low record, with the monthly current account to a record record, and the real effective exchange rate (reer) was “in a 101st stable.”
Sana Tawfik, Arifib Limited research head, attributed the negative impulse mainly to tensions between India and Pakistan.
With respect to other factors, he pointed out that the International Monetary Fund (IMF) had also reduced the country’s economic growth objective.
“However, the main reason behind the impulse remains tensions between India-Pakistan, although in the economic front, our inflation numbers are expected to be low,” he said.
Yesterday, the index fell below the 118,000 barriers for renewed concerns about Pakistan’s economic perspectives and the increase in geopolitical tensions caused a panic wave due to cautious investors.
Yesterday, the International Monetary Fund (IMF) reduced Pakistan’s economic growth prognosis at 2.6pc, which generated concerns about its economic perspective.
In January, the IMF had reduced the growth of the country to 3PC for the current fiscal year, below the 3.2PC that had previously projected.
In its last update, the IMF reduced growth estimation at 2.6pc for the current fiscal year and 3.6 for the next fiscal year. He also placed the estimate of inflation in 5.1pc and 7.7pc for current and fiscal years in the next.
The increase in commercial tariffs on Pakistani products could have a devastating impact on Pakistan’s important exports and serves as a call for diversification, according to a state group of experts.
Analysts had also attributed investment in feeling to intense regional geopolitical tensions, which led investors to adopt a cautious posture and block recent profits.
In an important climbing, India suspended the Treaty of Indo Aguas (IWT) with Pakistan with an immediate effect following an attack at the Cashmiro pahalgam occupied a day ago. Pakistan, in response, has called a National Security Committee meeting to deliberate the resulting situation.
The attack took place in Pahalgam, a tourist access point in the picturesque Muslim majority territory of the majority that caused thousands of visitors every summer, and at least 26 people died, all men, while the police said that another 17 people were injured, when the gunmen opened fire against visitors in the popular destination.
In addition, the Fitch forecast, highlighting the concern that the rupe can slide to RS285 against the US dollar for June and probably fall to RS295 for the next fiscal year, it also kept the bulls at the bulls while investors chose to have a cautious approach.
