PSX bleeds over 1,000 points amid political, economic uncertainty

The Pakistan Stock Exchange (PSX) declined by over 1,000 points on Monday as investors resumed the selling spree owing to economic uncertainty and political turmoil in the country.

The PSX benchmark KSE-100 Index was down by over 2 per cent to 43,903 points by mid-day.

"Stocks faced selling pressure amid a one-week delay in talks between Pakistan and IMF for resumption of the loan programme," Arif Habib Limited (AHL) Head of Research Tahir Abbas said while talking to The Express Tribune.

The country has not succeeded in acquiring any fresh bailout packages from friendly countries, including Saudi Arabia and UAE, during Prime Minister Shehbaz Sharif's recent visit.

The selling pressure was seen across the board and foreign investors were also speculating regarding selling their stocks as Pakistan's foreign exchange reserves have depleted and are hovering around $10.5 billion – the lowest in two years. With this, the country's import cover has dropped to a 1.5-month level from usually around 3-months.

Experts said Pakistan’s balance of international payment crisis pushed investors to sell part of their holdings at the PSX.

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