Stocks lose 314 points on economic concerns
KARACHI: Shares continued to tumble for the fourth successive day with the KSE-100 index recording a drop of 314.13 points (0.92 per cent) and close at 33,774.43 — falling below the 34,000-level after 21 trading sessions.
The investors’ concerns were mounting inflation with June CPI initial figure at 9.5pc, giving rise to fears over additional interest rate hike in the next Monetary Policy Statement which could further curtail economic growth. Sentiments were also spoiled by the Fitch Solutions which cut the Pakistan’s economic growth forecast for 2019-20 to 2.7pc, from 4pc.
After making a high of 173 points, the index lost steam and dropped to a low of 567 points as increase in taxation and gas prices weighed in on industrial sectors. The federal government approved rise in gas tariffs by up to 191pc and electricity prices by Rs1.50 per unit to comply with the International Monetary Fund conditions.
Investors held their breath as IMF executive board is scheduled to meet on July 3 to consider three-year ‘extended fund facility’ of $6 billion for Pakistan.