KARACHI: The KSE-100 Index was subjected to another round of ruthless offloading, as the benchmark tanked over 640 points or 1.52% in intra-day trading, going as low as 41,370 within the first one-and-a-half-hour.
Political uncertainty at a time when Pakistan’s economy is subject to issues on the external trade front, coupled with lack of decision-making, has put investors at unease over the past few weeks. The indictment of Finance Minister Ishaq Dar and the re-election of Nawaz Sharif as Pakistan Muslim League-Nawaz (PML-N) president has compounded worries that there is a political as well as an economic turmoil ahead for the country.
On Tuesday, stocks landed in the red from the word go, a day after volume on the all-share index hit a two-and-a-half year low. Lacklustre trading and absence of positive triggers meant investors were happy to sit out and watch the bears put on a show at the Pakistan Stock Exchange (PSX).
Market talk doing the rounds today suggested that Nawaz Sharif’s comeback after President Mamnoon Hussain signed the controversial Election Act 2017 into law may have paved way for his political future, but has created further uncertainty in the minds of investors who were already jittery looking at major economic indicators.
The PSX’s KSE-100 Index was Asia’s top-performer in 2016, but has been dominated by the bears this year with correction, political uncertainty and economic worries taking their toll on investors.