Stocks sink by over 2,200 points amid uncertainty over govt formation
KSE-100 index decreases by 2,232.91 points or 3.55% during intraday trade.
KARACHI: The Pakistan Stock Exchange (PSX) witnessed a steep decline during the early morning trading as the benchmark KSE-100 fell by over 2,200 points on Monday amid uncertainty regarding the formation of a new government.
The benchmark index decreased by 2,232.91 points or 3.55% to trade at 60,710 points, down from the previous close of 62,943 points.
Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, attributed the loss to the “uncertainty regarding the formation of the government”.
On February 8, Pakistan conducted its 10th general elections with a large number of Pakistan Tehreek-e-Insaf (PTI) backed independent candidates clinching victory.
The PSX on Friday plummeted over 2,000 points initially due to the uncertain outcome of the general elections held on February 8.
However, the market managed to recoup some losses by the day’s end, closing 1.87% lower at 62,943 points.
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Market analysts, such as Muhammad Sohail of Topline Securities, attributed the initial decline to the “unexpected” election results, which deviated from pre-election expectations.
This uncertainty triggered a massive sell-off, with the benchmark KSE-100 index losing 3% at its lowest point.
Rupee makes paltry gains against dollar in interbank
The rupee appreciated by 18 paise against the dollar in the interbank market on Monday, insiders said as the market begins a new week, three days after the country went to polls.
The dollar was trading at Rs279.10 in the early morning trade, they added, against the previous closing of Rs279.28.
The rupee gained six paise, or appreciated by 0.02%, on Friday, according to the State Bank of Pakistan.
Total liquid foreign reserves held by the country stood at $13.10 billion as of February 02, 2024, the central bank said.
Many are of the view that elections would bring stability to the country. The provisional results by the Election Commission of Pakistan showed that independents have secured majority of the National Assembly seats.
