KARACHI; Stocks at the Pakistan Stock Exchange (PSX) lost momentum on Tuesday as the impact of strong corporate earnings faded and fresh concerns emerged over inflation and proposed constitutional amendments.
The benchmark KSE-100 Index fell by 1,521.39 points, or 0.93%, closing at 161,281.76 compared to the previous session’s 162,803.15. The index briefly climbed to an intraday high of 163,384.95, but later dropped to a low of 161,159.26 amid selling pressure.
According to Ahfaz Mustafa, CEO of Ismail Iqbal Securities, “The result season is close to an end, and inflation has come in higher than expected. This has caused a period of consolidation.” He added that market direction in the coming days would largely depend on developments related to the 27th Constitutional Amendment and the NFC (National Finance Commission) award.
Political factors also influenced investor sentiment after PPP Chairman Bilawal Bhutto Zardari revealed that a PML-N delegation led by Prime Minister Shehbaz Sharif had sought the party’s backing for the proposed amendment.
The constitutional package reportedly includes the creation of a Constitutional Court, restoration of executive magistrates, and changes to judicial appointments, along with proposals affecting the NFC Award, Article 243, and federal authority over education and population planning.
Meanwhile, inflation data added to the cautious outlook. The Consumer Price Index (CPI) rose 6.2% year-on-year in October, compared to 5.6% in September, mainly due to food price hikes driven by flood damage and disruptions to trade routes near border areas.
On Monday, the PSX had posted a 0.72% gain, closing at 162,803.15, but Tuesday’s trading session saw renewed selling as economic and political uncertainties weighed on the market.
