On Tuesday, the Pakistan Stock Exchange (PSX) experienced a significant decline, with the benchmark KSE-100 index losing 455 points to close at 41,374 points.
This decline was attributed to the political turmoil in the country following the arrest of Imran Khan, the chairman of the Pakistan Tehreek-e-Insaf (PTI) party. The market opened with depressive sentiments and the stocks further tumbled down throughout the day.
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According to analysts at Arif Habib Limited, a bloodbath session was recorded at the PSX, and sectors that contributed to the poor performance included Commercial Banks, E&P’s, Fertilizer, Investment Banks/ Investment Companies/ Securities Companies, and Technology & Communication.
Despite the political turmoil, investor participation remained reasonable, and decent volumes were recorded across the board. Additionally, 3rd tier stocks remained in the limelight, indicating that investors were looking for alternatives to the main players.
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Volumes increased from 179.1 million shares to 203.1 million shares, showing a 13.4% increase compared to the previous day. The average traded value also increased by 22.4% to USD 20.5 million compared to USD 16.7 million.
WTL, NBP, KEL, TPLP, and HASCOL were some of the stocks that contributed significantly to the volumes traded during the session.
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The political turmoil in Pakistan is likely to have a significant impact on the country’s economy and the performance of its stock market in the coming days. The arrest of a prominent political leader such as Imran Khan can result in a loss of confidence among investors, leading to a decline in the stock market.
However, it is important to note that the stock market is subject to fluctuations due to various factors, and a single event or news item may not always be the sole cause of a market downturn.
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Investors should exercise caution and carry out due diligence before making any investment decisions in the current scenario.
They should also keep themselves updated with the latest developments in the political and economic landscape of Pakistan to mitigate any potential risks.
