PSX Faces Turbulence Amid Geopolitical Tensions, Covid-19 Updates
The PSX's decline was also influenced by a decline in average daily trading volumes and a significant drop in the value of traded shares. The government's successful raising of Rs 557 billion through a Pakistan Investment Bonds auction and the securing of a $1 billion syndicated loan from a foreign commercial bank are expected to provide some stability to the market. The WHO's review of the global response to the pandemic will also provide valuable insights for future pandemic preparedness and response efforts.
The Pakistan Stock Exchange (PSX) experienced a decline of 3.5% in its benchmark KSE-100 Index, closing at 120,023.23 points, as rising geopolitical tensions and volatile international commodity prices took a toll on investor sentiment. The State Bank of Pakistan's decision to maintain the benchmark policy rate at 11% also had an impact on the market.
The decline in the PSX was also influenced by mixed domestic economic indicators, including a 19% year-on-year decline in exports and a 9% rise in imports. However, the industrial sector showed signs of recovery, with the Large Scale Manufacturing index growing 2.39% year-on-year in May. The technology sector also continued its upward trajectory, with IT exports rising 19% to $3.5 billion in the first eleven months of FY2025.
In related news, the World Health Organization (WHO) announced that the global spread of the COVID-19 pandemic has slowed down significantly, with a 22% decrease in new cases reported in the last week. The WHO attributed this decline to improved vaccination efforts and increased adherence to public health measures. The organization also reported a 12% decrease in deaths related to COVID-19.
As the PSX navigates the challenges posed by geopolitical tensions and economic uncertainty, the government's efforts to promote eco-friendly transportation and reduce reliance on imported fuels through the National Electric Vehicle Policy for 2025-30 are expected to have a positive impact on the market. The WHO's announcement on the decline of COVID-19 cases also brings a sense of optimism, but the need for continued vigilance and adherence to public health measures remains.