Karachi Stock Exchange (KSE) again saw a negative trend because of investors getting cautious due to the recent foreign outflows.
The 100-share index closed at 33,537.42, down by 261.38 points due to foreign outflows of more than $20 million earlier.
“The market opened with a negative sentiment as more than $20 million foreign outflow was witnessed in the last session,” shared the head of research at KASB Securities, Fawad Khan.
According to him, investors will be keeping an eye on foreign outflows ahead, which will shape the market.
Major declines were seen in oil and gas exploration, with Oil and Gas Development Co Ltd going down by 0.9 percent and Pakistan Petroleum Ltd declining by 2.8 percent.
The Rupee also saw further decline, closing at 104.00/104.05 after 103.95/104.05 on Tuesday. Rates in the money market also rose overnight, and the negative trend started on Monday as due to Chinese equities and US dollar dropping.
According to financial experts, some exporter groups in the country are trying to create instability by buying huge quantities of US dollars.
However, money changers and currency dealers pointed towards the pilgrims who bought large quantities of Saudi Riyals.
In either case, the Pakistani rupee weakening can lead to inflation in the country, and it remains to be seen whether the situation improves over time.