Karachi, November 26, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) dropped by 475 points at the start of trading on Tuesday due to escalating political instability.
The KSE-100 index was trading at 97,605 points around 10:00 AM PST, down from the previous day’s closing of 98,080 points. The decline came after reports emerged that the government had called in the army to control a protest led by Pakistan Tehreek-i-Insaf (PTI), which had turned violent in Islamabad. The news sent negative signals to investors, causing immediate sell-offs across the market.
The political unrest comes at a time when the KSE-100 index had reached a historic high of 98,080 points on the previous day, sparking optimism among market analysts about the possibility of crossing the 100,000-point mark. However, the rising political tensions have raised concerns that the market’s upward momentum may be derailed.
Despite the early drop, analysts believe that the KSE-100 index has shown remarkable resilience. They attribute this to investor confidence in Pakistan’s economic fundamentals, including steady exports, remittances, and the government’s commitment to implementing market-friendly reforms. However, experts caution that ongoing volatility could continue if political instability remains unresolved.
“The KSE-100 index’s performance reflects underlying confidence in the economy, but the current political crisis is creating uncertainty,” said a senior market analyst. “Investors are wary of further disruptions, and until the situation stabilizes, we could see continued fluctuations in the market.”
While the initial downturn has raised concerns, some analysts remain hopeful that once the political tensions ease, the market will bounce back, driven by positive economic indicators. The resilience shown by the KSE-100 index during previous periods of instability suggests that the market has the potential to recover, though it remains susceptible to external shocks and domestic political developments.
Experts also noted that the future performance of the KSE-100 index will be heavily influenced by macroeconomic stability, including inflation control, fiscal policy, and external factors such as global commodity prices and geopolitical trends. If political tensions subside, the index could resume its upward trajectory.
The performance of the KSE-100 index in the coming days will be a key indicator of investor sentiment and the market’s ability to navigate the current political storm.
