Economic uncertainty weighs on stocks

Pakistan Stock Exchange (PSX) dropped over 200 points owing to profit-taking in selected shares on Monday amid economic uncertainty and worries over the outcome of regulatory oversight of stock trading. In the morning, the KSE-100 index opened on a positive note, reaching its intra-day high of 79,014.68 points. However, the early gains proved short-lived as the market quickly reversed course due to political noise and concerns whether the International Monetary Fund (IMF) would approve Punjab's power tariff reduction. Those factors, coupled with a Rs2.8 trillion funding plan aimed at preventing industrial closures at a time of funding constraints, fueled bearish sentiment. Investors engaged in profit-taking in key sectors including banking, fertiliser, auto and steel. As a result, the market dropped below the 79,000 mark and reached its intra-day low of 78,240.36 points.