The Pakistan Stock Exchange (PSX) mirrored the negativity prevalent in global markets on Tuesday, as the benchmark KSE-100 index plummeted by approximately 900 points during trading. By 2:30 pm, the index had declined to 74,727.96, a decrease of 847.29 points or 1.12%. Selling pressure was evident in key sectors, including cement, chemical, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and refineries. Index-heavy stocks such as PRL, OGDC, PPL, HBL, MEBL, and NBP were trading in the red.
Despite positive local economic indicators, including a significant decline in inflation rate, making a strong case for a rate cut, the market sentiment remained bearish. On Monday, PSX witnessed a negative session, with the KSE-100 Index failing to sustain a bullish start and closing lower by over 300 points at 75,575.26.
In a significant development, Pakistan’s headline inflation rate clocked in at 11.8% on a year-on-year basis in May, according to the Pakistan Bureau of Statistics (PBS), significantly lower than the 17.3% reading in April.
Meanwhile, Indian stocks experienced their largest single-day decline in four years on Tuesday, as vote counting suggested Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP)-led alliance may not secure an overwhelming majority as predicted by exit polls. The Nifty index dropped by 5.43% to 22,000.60 points, while the BSE index fell to a low of 72,337.34 points, down 5.4% on the day.
