During the past week, bears dominated the stock market as the benchmark KSE-100 index lost 1,547 points during the week, to end the week at 45,749 levels.
The bearish sentiments prevailed as gloomy economic outlook, including fear of rising inflationary pressure amid continues rupee depreciation against dollar led to dampening.
Despite Saudi Arabia’s declaration of a USD3 billion deposit with the SBP, the current foreign exchange reserves reported recently do not reflect these inflows, causing the PKR to fall sharply against the US dollar, closing at 175.73/USD. Moreover, delay in outcome of IMF talks is also augmenting negative sentiments . Moreover, increase in CRR by SBP is also pointing towards Monetary Tightening Perspective where Inflation is getting out of hand.
Political Uncertainty, upcoming Monetary Policy, Expected Current Account Deficit figures, ongoing IMF negotiations are expected to keep the Market Volatile.
The index has closed below the support around 46,000 points paving the way for more declines toward 44,000 points.
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