KSE-100 sheds 605 points as dollar hits new heights against rupee

The Pakistan Stock Exchange's (PSX) KSE-100 index shed 605 points on Monday, declining by 1.5 percent to close belo
16 Jul, 2018

The Pakistan Stock Exchange's (PSX) KSE-100 index shed 605 points on Monday, declining by 1.5 percent to close below 40,000 points.

The market remained in the negative from the start of the trading session as it lost 500 points early on, at the 100 index and was not able to maintain the level of 40 thousand points and started trading at 39, 749 points. The trading ended in negative zone to close at 39,666 points.

The rise in interest rates by the State Bank of Pakistan (SBP) and news about Pakistan going for the International Monetary Fund bailout program lead the negative rally. Apart from this, a large reduction in value of rupee also made negative impact on the share market.

The dollar jumped to record high against Pakistani Rupee on Monday to reach at 128.25 in the interbank market, gaining Rs6.75 against the rupee.

The PKR tumbled about five percent against dollar, following what market analysts said was the State Bank of Pakistan (SBP) fourth devaluation since December and part of efforts to avert a balance of payments crisis in the run-up to July 25 elections.

Earlier, the SBP also increase the key interest rate by 100 basis points to 7.5% for the next two months, as inflationary pressure and current account deficit exact a toll on the national economy.

Copyright Business Recorder, 2018

Read Comments