According to Spectrum Research, the KSE100 index experienced a notable decline of 2,359 points, closing at 45,313 points, primarily attributed to the PKR’s devaluation against the USD by 1.5%WoW to PKR305/USD in the interbank market.

This downward trajectory was further exacerbated by the absence of progress in resolving the persistent circular debt issue and the uncertainty surrounding the government’s stance on reverting electricity tariff hikes, which had prompted protests and received mixed directives from the prime minister.

Furthermore, the market was also negatively influenced by a series of factors, including reports in the local media suggesting a potential interest rate hike of 300bps, ongoing uncertainty regarding upcoming elections, warnings from CMEC about potential production halts due to payment delays, pauses in investments from GCC countries, Moody’s apprehensions regarding inadequate infrastructure to impact credit rating, a significant surge in energy prices driven by higher international oil prices, declining foreign exchange reserves, and concerns surrounding the widening current account deficit, all of these factors collectively hurt the stock market.