Stocks drop as PSX is overshadowed by uncertainty.
Following the Pahalgam incident, simmering geopolitical tensions between India and Pakistan caused the Pakistan Stock Exchange (PSX) to open Monday on a pessimistic note.
After dropping around 900 points within the first few hours of trading in the PSX, the benchmark KSE-100 Index was trading at 113,223.46.
Massive selling pressure was observed across key sectors including power generation, oil and gas exploration companies, OMCs, automobile assemblers and commercial banks.
In addition, the market’s lack of certainty caused key equities like HUBCO, PSO, SNGPL, MARI, OGDC, PPL, MEBL, NBP, and UBL to trade down.
The ongoing decline is said to be linked with India’s possible plans of launching airstrikes after Indian Prime Minister Narendra Modi held a significant 40-minute meeting with Air Chief Marshal VR Chaudhari a day ago.
Apart from that, the Monetary Policy Committee’s (MPC) meeting today, which will determine the policy rate, is a significant reason for investors’ hesitancy.
The benchmark KSE-100 Index closed at 114,114 points, reflecting the fact that the equities’ trip remained erratic during the last week due to the growing geopolitical tension between India and Pakistan.
