KARACHI: The newest round of rupee depreciation on Thursday led the inventory market to nosedive over 700 factors in intra-day buying and selling.
The recent devaluation prompted renewed promoting as buyers reacted with panic to the most recent improvement.
The benchmark KSE-100 Index fell over 650 factors under 33,650 factors in quick response to the rupee fall, stockbrokers stated.
The rupee depreciation would badly affect earnings of the businesses listed on the PSX.
The transfer would additionally slender down return on funding in shares or flip it damaging going ahead, stated a inventory dealer.
At 11:25, the KSE-100 index – a benchmark for market efficiency – was down 715 factors or 2.13% to face round 33,575.95 factors.
Promoting stress was witnessed in shares throughout the board as buyers offloaded shares.
Arif Habib Restricted Head of Fairness Gross sales Saad bin Ahmed stated shares invited renewed promoting on return of volatility in foreign money market.
The recent rupee depreciation of over 5 per cent to intra-day low of 148.50 within the inter-bank has made import of uncooked materials so costly, particularly by listed firms within the sectors together with pharmaceutical, cement and autos.
The volatility in rupee, nonetheless, is nice for the sectors together with oil and exploration and textiles.
However at this time limit such sectors additionally remained underneath promoting stress, he stated.
Motion taken by PM Imran Khan on Wednesday to manage rupee at a sure stage at open market had given confidence to buyers that’s why they purchased shares rallied at PSX within the morning.