Ongoing political uncertainty dented sentiments at the Pakistan Stock Exchange (PSX), as the benchmark KSE-100 Index dropped over 500 points during intra-day trading on Wednesday.
At the time of filing this report, the KSE-100 Index was being traded at 41,448.94, registering a loss of 501.38 points or a percentage fall of 1.20%. At close on Tuesday, the KSE-100 had fallen 1.15% to finish at 41,950.32, the lowest level since December 1, 2020, when it finished at 41,665.27.
KSE-100 falls below 42,000 mark, closes at lowest level since Dec 2020
The market remains gripped with uncertainty after Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan called for a long march on Islamabad today. “The political uncertainty, especially the long march, has lead to this expected negative reaction in the market,” Sana Tawfik, vice-president research and a senior analyst at Arif Habib Limited (AHL), told Business Recorder.
Interior Minister Rana Sanaullah on Tuesday announced that the federal cabinet has decided to stop the PTI from holding a long march in order to ensure the safety and security of the residents of the capital. But Imran Khan said that he would go ahead with the protest.
Meanwhile, in a positive development on Tuesday, Saudi Minister of Finance Mohammed al-Jadaan said the kingdom is finalising the extension of its $3 billion deposit to Pakistan.
Tawfik said that the market will remain under pressure throughout the day, and would continue to remain in 400-500 points down range. “The announcement by Saudi Arabia regarding the extension of $3 billion deposit to Pakistan is a positive development. However, the political noise is overpowering the sentiments,” she said.