PSX performance may decline further with the expected dollar rate rise

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Pakistan Stock Exchange or PSX performance can further decline with the expected Rupee devaluation.

PSX performance has severely affected in last 100 days. However, on November 29, PM Imran Khan highlighted the report card of PTI government’s achievements in 100 days.

The other day, equity investors faced the biggest Rupee devaluation when the US dollar hit Rs 143.5. However, the currency devaluation surprised everyone as the Finance Minister Asad Umar assured that there was no forthcoming crisis and the current account deficit was also decreasing.

However, regardless the PSX performance, State Bank of Pakistan (SBP) is also running out of options to deal with the current account deficit and inflation.  On the other side, going for International Monetary Fund or IMF loan is also not a viable option for the developing economy like Pakistan.

With the rising inflation, the PSX performance may be severely affected in the oil marketing, steel, and cement sectors. However, automobile companies’ shares will be also get affected.

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