Pakistani equities saw a sell-off today across the board, as the market felt the political heat on Monday as a result of constitutional surprises over the weekend. During the early hours of trade, the Pakistan Stock Exchange (PSX) saw a frenetic sell-off, with the benchmark KSE-100 index losing 1100 points in intraday trading.
The market showed gloomy sentiments after starting at 44,364.96 points, with the KSE-100 index losing 1100.99 points on the day.
The KSE-100 was down 938 points, or 2.12 percent, at 44,213.53 points at the time of posting this article.
Muhammad Waqas Ghani, Assistant Vice President of JS Global, told TechX Pakistan, “The market was already in red when the trading session at PSX started and dropped 1,100 points in the first few minutes primarily owing to a lack of clarity on the political front.
The market has eventually recovered a little from there but seemingly will remain under pressure until clarity emerges on the political front.
The market will closely follow developments in the Supreme Court hearing which will likely help set the tone for the coming days.”
Following an effort to oust Prime Minister Imran Khan from office, President Arif Alvi dissolved parliament on Sunday, paving the way for new elections.
The decision of Pakistan’s parliamentary speaker to reject a no-confidence vote in Prime Minister Imran Khan, which was followed by the dissolution of the National Assembly, has triggered a constitutional crisis, with the opposition threatening to take the matter to the Supreme Court.
Investors’ cherry-picked stocks that had dropped to acceptable prices, causing the market to rise by more than 200 points on Friday.
Investors had ignored all bearish signals at the time and registered nominal gains in anticipation of positive financial reports for the quarter ending March 31, 2022, as well as a drop in global oil prices.
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