Pakistan Stock Exchange misery enhances as bench mark index falls by 800 points

Ahead of the State Bank’s Monetary Policy, the benchmark index fell nearly 800 points by 11am on Monday to reach 32,408 ─ roughly the lowest in three years.

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Moreover, the rupee-dollar exchange rate in the interbank market rose by a single rupee to Rs149.25.

The index has been suffering heavy losses since the start of last week, when investors were spooked by the potentially harsh conditions that may be attached to the International Monetary Fund bailout package of $6 billion, which robbed them of the joy of successful conclusion of the staff level talks with the International lending agency.

The market briefly rallied 1.2pc in the third trading session, as news regarding Kekra-1 well nearing its conclusion surfaced as a glimmer of hope in an otherwise dull market, recouping some of earlier losses.

Traders watched with relief as Pakistan was able to stave off the downgrade by MSCI to Frontier Market. A bit of excitement was created mid-week on positive news relating to Kekra-1 and the announcement of Amnesty Scheme.

But it provided to be short-lived as investors worried over the Monetary Policy announcement scheduled for May 20, where rumours of pre-emptive 100-200 basis points interest rate hike started doing rounds.

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