The Pakistan Stock Exchange (PSX) tumbled on Wednesday with the benchmark KSE-100 Index losing more than 1,000 points at the closing amid key political and legal developments.
At the closing of the trading session, the benchmark KSE-100 Index shed 1,146.62 points or 1.73% to settle at 65,280.16 levels while the KSE-30 Index shed 365.28 points or 1.65% to reach 21,789.44 levels.
During the midday trading, the market hit a low of 64,427.38 owing to sudden shockwaves after the market opened on a positive note as the KSE-100 broke the 67,000 mark in the first 30 minutes or so.
However, the downward trend was seen by noon and then shortly after 2:20pm, stocks plunged to 64,4410, losing 1,900 points.
Later the market showed recovery but still closed in a red zone.
Although it was not clear if the market’s movement was linked to political developments in the country, the plunge coincided with two key events during the day.
PML-N leader Nawaz Sharif said that although he did not want to exact revenge, he wanted accountability if he came to power.
The Pakistan Supreme Court allowed military courts to try civilians booked for May 9 violence.
Business Recorder reported that across-the-board selling was witnessed, with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, and refinery trading in the red. However, buying was witnessed in the oil and gas exploration companies and OMCs, it said.
Sana Tawfik, an analyst at Arif Habib Limited (AHL) told Business Recorder, attributed the bearish trend to profit-taking, though she also said that the volatility on the political front is also driving negativity at the bourse.
“The bearish sentiment comes on account of profit-taking,” Sana Tawfik, analyst at Arif Habib Limited (AHL) told Business Recorder.
