The Pakistan Stock Exchange (PSX) lost ground for the fifth consecutive day on Thursday, as investors continued to sell off shares amid concerns about a steep hike in interest rates, economic uncertainty, and the depreciating rupee.
The KSE-100 index, which tracks the performance of the 100 largest companies listed on the PSX, fell by 623 points to 45,621.12 by 12pm, down by 1.35% from yesterday's close of 46,244.55.
Raza Jafri, Equity head at Intermarket Securities, said that the KSE-100 continued to be under severe selling pressure due to a lack of confidence in the economy, particularly the depreciating rupee.
"The market is expecting a steep hike in interest rates in the upcoming monetary policy review, which is likely to further dampen economic activity," Jafri said. "The depreciating rupee is also a major concern for investors, as it makes imports more expensive and erodes the purchasing power of consumers."
The rupee has been under pressure in recent weeks, and it hit a new all-time low of 177.86 against the US dollar on Wednesday. The depreciation of the rupee is making it difficult for businesses to import raw materials and other inputs, which is also weighing on the stock market.
The PSX is likely to remain volatile in the near term, as investors continue to weigh the risks and uncertainties facing the economy.
