KARACHI: The Pakistan Stock Exchange (PSX) saw a complete bear market last week as a result of escalating political instability and uncertainty surrounding the final approval of a $6 billion IMF loan package. The market fell on three of the five trading days.
Market investors were observed taking a cautious approach following the by-elections and Punjab’s election of a new chief minister.Rupee started losing value against the US dollar in the week under review, reaching an all-time low of 228.37, as foreign reserves were being depleted and there was uncertainty regarding support from allies, which heightened investor concerns.
Before disbursing the $1.2 billion loan, the IMF is also determining which friendly nations are prepared to give financial assistance to Pakistan. The market was under pressure as a result of the situation, and on Thursday, the index fell below 40,000 points for the first time since November 2020.
