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Stock market sheds 800 points in intraday trading

Updated May 20, 2019

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Photo courtesy https://dps.psx.com.pk/
Photo courtesy https://dps.psx.com.pk/

The benchmark index shut down at a loss of 155.77 points on Monday after an initial nosedive of 800 points by 11am ─ hours ahead of the State Bank of Pakistan's monetary policy announcement.

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.

Take a look: Politics around the IMF package

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.

The hardest blow during the week was the surprise devaluation of the Rupee by 3.6pc which aggravated the bearish sentiments.