Red rally continues at PSX as KSE-100 Index bleeds over 1,000 points

Bears continue to rule the roost at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index dropped by over 1,000 points at mid-day on Tuesday.

At the time of filing this report, the index was being traded at 43,968.04 points showing a drop of 1083.02 points and a negative percent change of 2.4pc.

Concerns over inflation amid a rise in international oil prices and continued political noise have created pressure in the market. Talking to a private channel, CEO of Topline Securities Mohammad Sohail has projected that in the coming days the political scenario and IMF loan will dictate the direction of the capital market.

On Monday, Pakistan Stock Exchange closed in deep red due to panic selling over investors’ concerns over the prevailing political situation in the country. The KSE-100 Index plunged by 786.29 points or 1.71 percent to close at 45,051.06 points.

On the international front, Asian stocks were lower on Tuesday as rising bond yields impacted tech shares and company valuations in China and Korea and investors grappled with their inflation fears as the United States looks set to pass a $1.9 trillion stimulus package.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.79% lower while Korea's Kospi fell by 1.88%, its fourth straight session of losses. Japan's Nikkei pared back earlier losses in the session to be 0.24% higher.

Whereas rise in oil prices has also been seen it was learned that Brent oil may rise into a range of $69.26-70.07 per barrel, as it has stabilized around a support at $67.94.

The support is provided by the 38.2% retracement of a five-wave cycle from $62.38. The first round of the drop from $71.38 may have completed, oil is expected to bounce towards the target range.