The benchmark KSE-100 Index shed 1,147.09 points or 1.88% to settle at 59,872.96 levels at the closing of the market.

Similarly, the KSE-30 Index lost 382.10 points or 1.87% to reach 20,099.31 levels at the market closing.

The plunge in the capital market came a day after Moody’s Investors Service highlighted a clouded credit rating outlook for Pakistan due to political uncertainty after the February 8 election.

“While negotiations between parties to form a coalition government are currently underway, prolonged delays will raise political and policy uncertainties at a time when Pakistan faces significant macroeconomic challenges, particularly its very weak external and liquidity position,” Moody’s analysts stated in a note.

While expressing concerns regarding the potential challenges by polarised political conditions, Moody’s stressed the need for timely decision-making in the face of significant macroeconomic pressures.