Dalit
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Shares at the Pakistan Stock Exchange (PSX) fell for a second day on Wednesday, with analysts citing delays in the completion of the International Monetary Fund’s (IMF) ninth review, the foreign exchange crisis and exchange rate instability.
The benchmark KSE-100 index lost 456.28 points, or 1.15 per cent, to reach 39,346.63 points at 12:26pm.
Head of Equity at Intermarket Securities Raza Jafri said the market’s downward trend was because of a lack of tangible progress regarding the balance of payments, including the delay in the completion of the IMF review and expected inflows from Saudi Arabia.
“The government has rightly come out with assuring statements that the IMF programme will be complied with, but the sentiment is low and investors want to see words backed by action,” he said.
Arif Habib Corporation’s Ahsan Mehanti said stocks fell because of the Pakistani rupee’s instability and the impact of the forex crisis on industrialists.
According to financial and data analytics portal Mettis Global, the local currency has fallen by Rs19.06 or 8.52pc against the dollar since the start of this fiscal year. It was down another 35 paise against the greenback in the interbank market at 12:30pm today, Forex Association of Pakistan data showed.
Meanwhile, dollars have disappeared from the open market, while a crisis in the interbank market has led to the stoppage of foreign payments. The country is unable to clear the dues owed to airlines or make payments for imported goods waiting at ports. Opening letters of credit (LCs) has become a challenge with several companies temporarily stopping production because of a shortage of imported raw materials.
“Political uncertainty, projections over higher inflation in December and concerns over IMF EFF (Extended Fund Facility) review delays because of rifts over government’s petroleum levies and budgeted flood losses played a catalyst role in the bearish [trend],” Mehanti added.
This is who the army brought in. Investors don't even trust looters. This is Pakistan's fate. Always beset by an economic crisis with investor confidence rock bottom. The Saudis might chip in once in a while to temporarily stabilise a sinking ship. Once the odd billion is used up the Saudis will be demanding a return of their loan and Pakistani economy will be back to rock bottom.
The benchmark KSE-100 index lost 456.28 points, or 1.15 per cent, to reach 39,346.63 points at 12:26pm.
Head of Equity at Intermarket Securities Raza Jafri said the market’s downward trend was because of a lack of tangible progress regarding the balance of payments, including the delay in the completion of the IMF review and expected inflows from Saudi Arabia.
“The government has rightly come out with assuring statements that the IMF programme will be complied with, but the sentiment is low and investors want to see words backed by action,” he said.
Arif Habib Corporation’s Ahsan Mehanti said stocks fell because of the Pakistani rupee’s instability and the impact of the forex crisis on industrialists.
According to financial and data analytics portal Mettis Global, the local currency has fallen by Rs19.06 or 8.52pc against the dollar since the start of this fiscal year. It was down another 35 paise against the greenback in the interbank market at 12:30pm today, Forex Association of Pakistan data showed.
Meanwhile, dollars have disappeared from the open market, while a crisis in the interbank market has led to the stoppage of foreign payments. The country is unable to clear the dues owed to airlines or make payments for imported goods waiting at ports. Opening letters of credit (LCs) has become a challenge with several companies temporarily stopping production because of a shortage of imported raw materials.
“Political uncertainty, projections over higher inflation in December and concerns over IMF EFF (Extended Fund Facility) review delays because of rifts over government’s petroleum levies and budgeted flood losses played a catalyst role in the bearish [trend],” Mehanti added.
Shares plummet 523 points on IMF delay, forex crisis
“The government has rightly come out with assuring statements but investors want to see words backed by action,” says analyst.
www.dawn.com
This is who the army brought in. Investors don't even trust looters. This is Pakistan's fate. Always beset by an economic crisis with investor confidence rock bottom. The Saudis might chip in once in a while to temporarily stabilise a sinking ship. Once the odd billion is used up the Saudis will be demanding a return of their loan and Pakistani economy will be back to rock bottom.
