On Wednesday, Pakistan’s stock market experienced a decline of 299 points due to the ongoing political turmoil following the arrest of PTI Chief Imran Khan.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,075 points, down from the previous day’s closing of 41,374 points.
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Analysts at Arif Habib Limited noted that the PSX witnessed another negative session during the day. The benchmark KSE-100 index opened in the red, maintaining the downward momentum from the previous close following the arrest of the former prime minister.
The political and economic instability in the country has further dampened investor sentiment, resulting in a further decrease in stock prices. Investor activity has significantly declined, with third-tier companies dominating the volume board.
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Various sectors contributed to the market’s performance, with the Commercial Banks (-76.4 points), Exploration & Production (-63.6 points), Technology & Communication (-35.7 points), Miscellaneous (-32.3 points), and Fertilizer (-29.0 points) sectors experiencing notable declines.
The trading volume also witnessed a significant drop from 203.1 million shares to 99.2 million shares, reflecting a decrease of 51.2% day-on-day. Similarly, the average traded value decreased by 44.6% to USD 11.4 million compared to USD 20.5 million.
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Among the stocks that had a significant impact on the trading volume were WTL, TPLP, BAFL, KEL, and MLCF.
The arrest of Imran Khan and the ensuing political turmoil have created an atmosphere of uncertainty in the stock market, resulting in decreased investor confidence. It is crucial for the government to address the political situation promptly and take measures to restore stability and investor trust in order to revitalize the stock market and promote economic growth.
