As stocks experienced a panic-stricken selling binge during the early hours of trade on Tuesday amid a serious economic crisis, bears ran amok at Pakistan Stock Exchange (PSX).
After the opening bell, the benchmark KSE-100 index started to trend downward and fell into the negative territory, shedding more than 1,100 points by the time trading resumed on Tuesday.
At 2:08 PM, the top index shed 1,120 points (2.75 percent), falling below 40,000 points to 39,849.
Waqas Ghani, the JS Global Assistant Vice President, stated:
“The market is under considerable pressure primarily owing to political uncertainty in the country and delay in talks with IMF amid worsening economic indicators. Economic and political tensions have impacted investor confidence to a great extent reflected in reduced market volumes in recent sessions. Selling by institutional investors due to fund redemptions has further added to the distressing situation.”
At 9:30 AM, the KSE 100 index began trading in the red at 40,970. Investors chose to liquidate their investments during trading hours since the atmosphere was more unpredictable. Since news of the dissolution of the Punjab and Khyber Pakhtunkhwa assemblies as well as the escalating political tensions hit the market, it has been difficult for investors to maintain trust in the index.
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