KARACHI: Pakistan stock market experienced drop of over 750 points during intra-day trade on Monday, brokers said.
“This negative trend in market is due to absence of market support fund”, Arif Habib Limited Head of Equity Sales, Saad bin Ahmed was of the view.
Economic Coordination Committee (ECC) of Cabinet approved market support fund worth Rs20 billion on May 31, 2019.
However, it has remained inactive since Ministry of Finance has yet not issued required letter of comfort to establish fund.
The benchmark KSE-100 index was down 2 percent or 691 points, to 34,434.39 points at around 2.15PM.
Current rollover week at PSX, during which investors settle debt taken to buy stocks.
The market may drop another 500 to 1,000 points if market support fund remains absent, he added.