KSE-100 loses more than 1,000 points

After a slight stop, the benchmark 100-Index at the Pakistan Stock Exchange resumed its march south. 

Political uncertainty and certainty of Rupee devaluation are the main reasons pushing the index down. The bench mark index fell a thousand points and tipping closer to the 12th June low of 43,027.

The index reached a level of 43,044.12 points and saw a decline of -2.38 per cent.

Mohammad Fawad Khan, Head of Research, BMA Capital told Geo.tv, investors are keeping a very close eye on the political situation; it is not very clear and that creates doubts in investor's minds. Fawad added, that economic fundamentals are equally concerning, the balance of payment situation is deteriorating and foreign exchange reserves are depleting.

PSX closes in red over deteriorating political situation, index down by over 1,350 points

Negative sentiments pushed the market down during early day trading on Tuesday

Pakistan's current account deficit reached $12 billion in FY17 or a billion dollar month. Growing middle class and their consumption are shifting the demand curve, imports serve the rising demand, though exports, remittance and investments are not at par and therefore not enough to pay the bills.

Some financial analysts believe the situation will lead Pakistan to another IMF program and a prerequisite would be to depreciate the Rupee.

Fawad maintains that foreign investors are expecting a Rupee depreciation in the next quarter and therefore they are trimming their positions and the index is slipping on the back of those concerns.