KARACHI: The Pakistan Stock Exchange (PSX) faced a sharp downturn on Friday as political uncertainty and widening trade deficit concerns rattled investor confidence. The market experienced significant selling pressure across key sectors, dragging the benchmark KSE-100 Index lower and reflecting heightened market anxiety over the country’s economic and political outlook.
According to market analysts, the day’s trading was overshadowed by fresh data showing a widening trade gap, which has raised alarms among investors already grappling with political instability. The KSE-100 Index closed in the red after losing hundreds of points, with heavy sell-offs witnessed in banking, energy, and cement sectors.
Experts pointed out that the widening trade deficit not only threatens the fragile economic stability but also places additional pressure on the rupee, which has already been under strain in recent weeks. The uncertainty surrounding upcoming political developments further deepened the gloom, leading both institutional and retail investors to adopt a risk-averse stance.
Volumes remained subdued compared to previous sessions, with traders preferring to stay on the sidelines until a clearer economic direction emerges. Analysts believe that without strong policy measures and political stability, the market could continue to face volatility in the coming weeks.
The PSX’s latest performance underscores the sensitivity of Pakistan’s equity market to macroeconomic indicators and political dynamics. Market watchers advise investors to proceed with caution and closely monitor developments on both the economic and political fronts before making significant portfolio decisions.
This story has been reported by PakTribune. All rights reserved.