Bears wrecked havoc on the Pakistan Stock Exchange (PSX) today, as equities plunged in a panicked sell-off on Tuesday amid significant political turmoil.
The benchmark KSE-100 index fell into the red zone right after the opening bell, shedding 800+ points as trading started on Tuesday morning.
The top index fell 877 points, or 2%, to 46,600 at 2:05 PM, falling below 47,000 points.
KSE-100 Index Fell
The benchmark KSE 100 index reached an intraday high of 47,372 after initially gaining 100 points. It quickly fell to a day’s low of 46,598.
The index finished 708 points down at 46,770. The KMI 30 index fell 1,764 points to 78,055 points.
Meanwhile, the KSE All Share index fell 393 points to close at 31,115.
In the second full week of the caretaker government’s mandate, the market is under significant pressure, owing mostly to political uncertainty in the country and worsening economic data.
Political Concerns and Its Impacts on PSX
Economic and political concerns have had an impact on investor confidence today, which is reflected in lower market volumes at the end of the day.
Selling was seen by institutional investors after former Prime Minister Imran Khan was re-arrested today, only seconds after the Islamabad High Court released him on bail in the Toshakhana case.
He will remain in judicial detention and appear in court on Wednesday, August 30.
The market is always sliding. The most visible and perhaps crucial reason is the movement of the US dollar against the PKR, which has worsened the current account deficit and put the economy in jeopardy.
PSX Top Contributors Today
Worldcall Telecom Limited, K-Electric Limited, and Dewan Farooque Motors Limited were the top contributors to the volume chart.
The scrips traded 27.4 million, 14.7 million, and 9.5 million shares, respectively.
Global equities markets were mostly heading south. WTI crude oil prices jumped 0.29 percent to $80.33, while Brent crude oil prices increased 0.36 percent to $84.72.
To read our blog on “Saudi investment increases PSX performance points,” click here.
