Karachi: (Business Report)
The stocks at Pakistan Stock Exchange see uncertain conditions amid announcement of new monetary policy. Already it is very high at 12.25 and if at all it goes higher then cost of production, prices, inflation under the huge tax measures are bound to affect the investment and stock market.
It goes clear as the entire economy is being managed by bureaucracy with no vision at political government level. Parliament has not been able to give its impartial feed back on the economic policy rather playing politics in the name of opposition.
The stock market faced heavy selling on Monday and the KSE-100 index nosedived over 700 points, dragged down by speculation about yet another hefty interest rate hike in the monetary policy announcement on Tuesday.
Market talk suggested that participants expected a hike of 100-150 basis points (bps) in the forthcoming monetary policy. On the other hand, the rupee again depreciated against the US dollar, which further dented investor sentiments.
Earlier, trading began on a negative note and after a short period of stable trading, the KSE-100 index turned bearish and continued to fall throughout the day.
Multiple negative triggers including protests by traders over budgetary measures and penalty of around $6 billion on Pakistan in Reko Diq case coupled with rupee depreciation sparked panic selling by investors. All index-heavy sectors closed the day in negative territory.
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 714.14 points, or 2.12%, to settle at 32,958.35.