PSX faces setback over political uncertainty

Pakistan Stock Exchange (PSX) on Tuesday came under pressure and registered hefty losses as the benchmark KSE-100 index dropped nearly 1,500 points, extending its downturn from the previous day. Analysts attributed the bearish trend to the State Bank of Pakistan's (SBP) cautious policy rate cut, high core inflation and mounting economic risks. Adding to the negative sentiment included poor financial results from key oil sector players, ongoing gas reforms and uncertainty surrounding talks between the government and Pakistan Tehreek-e-Insaf (PTI). Additionally, the rollover of January positions contributed to the decline. The index hit the intra-day low of 111,435 points before closing at 112,030. Despite the downtrend, analysts saw a positive outlook, drawn from the State Bank's rate cut, which may buoy investor sentiment.