Stocks at the Pakistan Stock Exchange (PSX) took a hit on Tuesday, with the benchmark KSE-100 index dropping over 300 points. The market closed at 81,483.64 points, down 0.45pc from the previous day. Raza Jafri from EFG Hermes Pakistan noted that the market was reacting negatively to state-owned oil exploration companies’ recent result misses and news of possible contract revisions for independent power producers (IPPs).
The government’s announcement of renegotiating IPP contracts to control electricity tariffs has added to the market’s uncertainty. Analysts suggest investing in high-dividend-paying stocks and companies benefitting from structural reforms. The bearish trend was also attributed to the Senate panel’s call for investigating manipulation of US dollar rates by commercial banks and political uncertainty following a Supreme Court verdict supporting PTI’s bid for reserved seats.
Investors should keep an eye on developments in the energy sector and government policies to make informed investment decisions amidst the market fluctuations.