During the trading day, the benchmark KSE 100 Index dropped more than 2000 points, suggesting that shares on the Pakistan Stock Exchange (PSX) are under heavy selling pressure.
The Pakistan stock market has dropped as the country's inflation and trade deficits have worsened. In the Hundred Index, the market dropped 2053 points. Hundreds of billions of rupees were lost by investors. The Hundred Index has reached a new high of 43,315 points.
Trading began at 45,369 points on Thursday, and by 1:00 p.m., the index had lost 1,916 points.
Intermarket Securities' head of equities, Raza Jafari, compared the increase in trade imbalances to a severe drop in the rupee, forecasting that the currency would continue under pressure and interest rates would rise quickly.
He went on to say that the authorities have already implemented important economic improvements, and that the new Corona model Omicron has lowered commodity prices on the global market. This might be viewed as an opportunity.
The stock market's stalling has been blamed on growing inflation, projected trade imbalances, and possible interest rate hikes, according to economists and experts. Experts predict that growing inflation will lead to increased interest rates.
Fears of increasing interest rates are causing the market to collapse, while trade imbalances have reached historic highs.
The situation of the market, according to senior journalist and broadcaster Kamran Khan, is "disastrous." Kamran Khan said in a tweet that the How will Imran Khan defend that during his three years in power, the debt burden on every Pakistani has increased from 133,000 to 235,000, the debt of the government of Pakistan has reached 50 trillion rupees, of which 20 trillion Imran Khan government in just three years...
Senior journalist Rizwan Razi believes that the stock market has dropped 2000 points in a single day for the first time in its 74-year history.
The stock market remains stagnating, according to experienced economist Shahbaz Rana, due to expanding trade imbalances and rising inflation. Shahbaz Rana said on Twitter that the stock market was once again bathed in blood. The market has dropped 2000 points so far.
The trade deficit has grown, and inflation has increased. The general public does not trust the words of higher authority.