PSX down by heavy rupee depreciation
KSE-100 plummets over 700 points in intra-day trading
The latest round of rupee depreciation on Thursday led the stock market to nosedive over 700 points in intra-day trading. The fresh devaluation prompted renewed selling as investors reacted with panic to the latest development. The benchmark KSE-100 Index fell over 650 points below 33,650 points in immediate reaction to the rupee fall, stockbrokers said. The rupee depreciation would badly impact earnings of the companies listed at the PSX.
The move would also narrow down return on investment in stocks or turn it negative going forward, said a stock trader. At 11:25, the KSE-100 index – a benchmark for market performance – was down 715 points or 2.13% to stand around 33,575.95 points. Selling pressure was witnessed in stocks across the board as investors offloaded stocks.
The stock market once again dived into the red zone as the latest round of rupee depreciation pushed the benchmark index down by over 700 points in intra-day trading on Thursday. The rupee dropped to an all-time low at 148.50 to the US dollar in the inter-bank market earlier in the day, weakening by over 5%, or Rs7.10, from Wednesday’s close of 141.4.
The fresh depreciation prompted renewed stock selling as investors reacted with panic to the latest development. As a result, the KSE-100 index, after a brief upward opening, dropped to an intra-day low of 33,574.85 points. The benchmark KSE-100 index fell over 650 points in immediate reaction to the rupee’s fall, stockbrokers said.