Pakistan Stock Exchange (PSX) 100-index stocks plunged by over 900 points in intraday trade amid the political uncertainty on the government formation, and reached 60,035.67 points benchmark
At the start of the trading, the Pakistan stock market entered a positive zone after falling 265 points on Friday, the last trading day of the current business week amid political forces efforts underway to form new governments in the Center and the provinces.
The 100-index increased by 100 points and was traded at 6,1120 points in the morning session.
On Monday, the Pakistan Stock Exchange (PSX) suffered a bloodbath as the benchmark KSE-100 Index plummeted by nearly three percent mainly due to clouds of uncertainty hovering over the political horizon after the results of the elections 2024 came in.
Must Read: Potential increase in petrol, diesel prices from Feb 16
As per the PSX website, the KSE-100 index started trading on a negative note by declining 670 points in the early hours and by 11:00 am, the index had fallen by 1,289 points or 2.05%.
The sharp decline was attributed to the investors’ fears over the political instability in the country following the inconclusive elections on February 8, 2024. No party was able to secure a majority in the parliament, raising the prospects of a hung government or a coalition with a weak mandate.
Earlier, Bloomberg reported increasing investor apprehension, attributing it to the election’s outcome, which hints at a rise in political instability.
Despite government efforts to dispel concerns regarding its circular debt reduction and tariff rationalization plans, the oil & gas exploration companies sector experienced the most significant impact.
