PSX tumbles on ‘poor’ corporate earnings

Despite str­ong anticipation of a sixth straight cut in the interest rate at the monetary policy review meeting later in the evening, the Pakistan Sto­ck Exchange on Monday witnessed a roller-coaster session mainly due to political instability, a hike in gas tariffs and disappointing corporate results. The Economic Coordina­tion Committee’s decision to increase the gas tariff by almost 17pc for captive po­­wer plants was the key dep­ressant. This move drew a strong reaction from the ex­­­port-oriented players, es­­pecially the textile sector, saying this move would hurt the country’s export competitiveness in the regional and international markets. Topline Securities Ltd said the market opened positively, with the index making an impressive int­r­a­day high of 716 points. How­­ever, the momentum was short-lived as bears swi­­ftly took charge. The index plunged to an intraday low of 1,398 points bef­ore closing at 113,520, mar­king a decline of 1,360 poi­nts or 1.18pc day-on-day.