A weekly review: Stocks lose 448 points amid uncertainty over budget
Last updated on: 22 June,2019 09:23 pm
On Friday, the KSE-100 index opened upwards but continued to fluctuate sharply.
KARACHI (Dunya News) – The stock market remained highly volatile in the trading sessions of the outgoing week and closed at 35,125 points after losing 448 points or 1.3 percent, restricted by economic and political uncertainty.
On Friday, the KSE-100 index opened upwards but continued to fluctuate sharply over uncertainty in passing of the proposed budget 2019-20.
The benchmark index posted limited gains on the last trading day of the week, and recorded an increase of only 129.34 points.
During the outgoing week, foreign investors sold shares worth $56 million, and the overall value of the shares declined by Rs88 billion.
On the other hand of the economic front, a rising trend in demand of US dollars was observed by importers. The greenback gained 98 paisa against the rupee in the interbank market, and closed at Rs156.83.
In the open market, the value of the rupee reduced by 30 paisa, and closed at Rs157.20 on Friday.
Furthermore, the price of gold in the local market saw a significant surge of Rs2,200 per tola during the outgoing week, as gold prices in the international market surpassed $1,400 on Friday before retreating.
It has hit a historic all-time high of Rs78,100 per tola.
Prices also found support from worries about a potential U.S. military strike against Iran and a global trade conflict.
Spot gold rose 0.6% to $1,396.34 per ounce as of 1:50 p.m. EDT (1750 GMT). U.S. gold futures settled 0.2% higher at $1,400.10 per ounce.
Prices surged to $1,410.78 in the session, a high not seen since early September 2013, and were set to mark their best week in over three-years.
Gold is often considered a safe haven in times of political and economic uncertainty.
With input from Reuters