KARACHI: The Pakistan stock market came under massive selling pressure, as it dropped over 780 points to a 38-month low of 32,385 in intra-day trading on Monday.
Market analysts said investors extended selling on expectation for key interest rate hike by 100-200 basis points on Monday. The government is set to aggressively increase interest rate under the IMF loan programme.
This would be another blow to the stock market following massive rupee depreciation that happened last week.
Both the decisions; likely rate-hike and the rupee depreciation would badly hit businesses and impact their net earnings. For this reason, investors are taking exit at this point of time, they said.
At 11:02, the KSE-100 index – a benchmark for market performance – was down 744.93 points or 2.3% to stand at 32,421.69 points. They are most likely the local institutions which are selling stocks.
PSX witnessed across the board selling.