Shares at the Pakistan Stock Exchange (PSX) faced a significant downturn on Tuesday, dropping over 3,500 points after an initial surge earlier in the day. Analysts pointed to ongoing political instability as a key factor behind the market’s volatility.

“Market has declined by 3506 points on the back of political noise resulting from a political party’s march towards capital,” the Topline Securities said in a statement.

The KSE-100 benchmark index started strong, rising by 1,431.29 points, or 1.46%, reaching 99,511.07 points shortly after the market opened, up from the previous close of 98,079.78 points at 11:14am.

But the upward momentum was short-lived. By the close of the trading session, the index had plummeted by 3,505.62 points, finishing at 94,574.16 points.

Earlier, analysts pointed to the negative sentiment stemming from heightened political unrest, as clashes between government forces and opposition groups escalated into violence.

The Pakistan Army was deployed on Monday night following confrontations between supporters of Pakistan Tehreek-e-Insaf (PTI) and police, which resulted in the deaths of four Rangers and two police officers as PTI convoys entered Islamabad.