Today, bears controlled the Pakistan Stock Exchange (PSX) as shares fell more than 700 points.
The KSE-100 index dropped 702 points, or 0.93%, to 74,872.48 at 1:38 pm. This is down from 75,575.25 points yesterday.
Raza Jafri, CEO of EFG Hermes Pakistan, said, “Buyers are hesitant due to the upcoming federal budget, which could affect monetary policy.”
“The market fell on low trading,” he added.
The CEO of Topline Securities, Mohammed Sohail, explained that the drop in the stock market happened because the government didn’t finalize the budget on time, and some investors sold their shares.
Awais Ashraf from Akseer Research said,”The country needs more money from outside in the next couple of months. This is making people worry about how the State Bank of Pakistan will manage the money and keep the exchange rate stable.”
He also said, “Many different kinds of companies saw people selling their shares, like banks, fertilizer companies, oil and gas companies, and tech companies.”
Another expert, Shahab Farooq from Next Capital Limited, said, “Even though prices didn’t go up much in May 2024, the stock market is still uncertain because of politics.”
What is PSX and How It Contributes to Pakistan?
The Pakistan Stock Exchange (PSX) is like a big store where people in Pakistan buy and sell pieces of companies. It started in 2016 when three stock exchanges in Karachi, Lahore, and Islamabad joined together.
PSX helps companies get money by selling parts of their business, called shares. This money helps companies grow, make more jobs, and help the country become stronger.
It lets regular people and big investors put money into these companies, so they can make more money and grow their savings.
PSX also shows how well the economy is doing, telling us if people feel good about the country’s money plans. It helps us see where the economy is going and brings in money from other countries.
To read our blog on “7 IT Companies looks PSX’s GEM board listing,” click here
