The Pakistan Stock Exchange’s (PSX) KSE-100 index plunged 1,700 points in early morning trade on Friday as the results of the general elections continued to trickle in.
According to the PSX website, the benchmark index plunged by 2,278 points shortly after trading began.
The index then recovered slightly, losing 1720.27 points, or 2.68 per cent, to stand at 62,423.60 points from the previous close of 64,143.87 by 9:30am.
Topline Securities Ltd CEO Mohammed Sohail said that based on pre-election surveys, the market was expecting a PML-N led coalition government.
“But based on initial unofficial results, this looks difficult,” he noted.
Ali Malik, CEO of First National Equity, said the market was expecting a politically stable government after yesterday’s elections.
“However, it now seems that there are a lot of independents, which could form the next government. The investors will be clear, when the results are clear,” he said.
He further said that there was a lot of confusion among investors at the moment, who foresaw political instability with the formation of a government comprising independent candidates.
He said this was the reason that investors were not interested in buying and were looking to sell. “So uncertainty is the key factor for today’s fall,” he said.
More to follow
