According to a report of ‘Spectrum Research’, during the week, bears dominated the local bourse as the benchmark KSE-100 index nosedived 1,547 points, WoW to settle the weak at 45,749 levels. The bear run throughout the week was primarily induced by a gloomy economic outlook, including fear of rising inflationary pressure amid continuous rupee depreciation against the dollar.
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, the delay in the outcome of the PAK-IMF talks fueled the negative sentiments among investors. Additionally, scars of higher inflation likely make a case for monetary tightening, which also augmented the selling at local bourse.