The Pakistan Stock Exchange (KSE) extended its decline for an additional session on Tuesday as investor mood remained sombre ahead of Morgan Stanley Capital International’s (MSCI) decision on possible downgrade of Pakistan from Emerging Markets to Frontier Markets.
The KSE-100 index fell 189 points as market participants booked profit to safeguard their investment in case of a surprise MSCI verdict.
Resultantly, all index heavyweights including oil, automobile and cement sectors faced hefty selling. The rupee fared no better during the session and lost further ground, which dimmed investor hopes.
Earlier, trading kicked off with minor fluctuations, however, low investor spirits sparked a sell-off and dragged the market down.
A buying spree, emerging towards the end, erased some of the losses. At close, the benchmark KSE-100 index recorded a decrease of 188.56 points, or 0.4%, to settle at 46,729.96. A report of Arif Habib Limited stated that just before an important MSCI decision on the reclassification of Pakistan.