PSX tumbles by 634 points on investor caution

The Pakistan Stock Exchange (PSX) experienced a sharp decline on Wednesday, with the KSE-100 index plummeting by 634.94 points amid growing political uncertainty and cautious investor activity ahead of the State Bank of Pakistan's (SBP) upcoming policy announcement. The trading day started on a positive note, with the KSE-100 index hitting an intraday high of 79,507.17 points. However, market optimism quickly faded as bearish forces gained momentum. Political instability, weak global equities, and investor concerns over legislation related to the privatisation of state-owned enterprises (SOEs) and the terms of a new International Monetary Fund (IMF) programme, particularly restrictions on new Special Economic Zones (SEZs), weighed heavily on sentiment. Profit-taking in key sectors such as exploration and production (E&P), banking, and fertilisers added to the market's woes. As a result, the index dipped below the 79,000 mark, reaching a low of 78,612.16 points before closing at 78,651.79.