PSX sheds over 1,300 points during intraday trade

An investor talks on his phone at the PSX in this undated picture. — AFP/File

KARACHI: Political uncertainty continued to dominate the negative sentiment at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 index lost close to 1,400 points during intraday trading on Tuesday.

The KSE-100 index stood at 59,674.31, losing 1,391 points, or 2.28%, compared to the previous close of 61,065 points.

Benchmark KSE-100 Index at 9:49am. — PSX website
Benchmark KSE-100 Index at 9:49am. — PSX website

The index, in the last three sessions, is down by 4,017 points or 6.2%.

Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, had told that the loss was due to the “uncertainty regarding the formation of the government”.

Meanwhile, Muhammad Sohail, CEO of Topline Securities, also backed the argument that the decline was due to the “unexpected” election results, which deviated from pre-poll expectations.

Alpha Beta Core’s Khurram Schehzad said that investor confidence has been dampened by the election results and would continue to slide till a concrete decision is taken by the winning political parties with clarity on the economic team with a plan and direction towards addressing the key economic challenges, the market should stage a swift recovery.

After a delay of close to six months, Pakistanis went to polls on February 8 but the scenario that has emerged rather than showing political clarity has led to confusion.

The Pakistan Tehreek-e-Insaf (PTI) backed independent candidates managed to get the highest number of seats while the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) came in second and third respectively.

The PTI has announced it would sit in the opposition rather than forming a coalition government while PPP and PML-N have been holding talks for the formation of the government. 

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