Stocks plunge 1,250 points on no-trust move rejection

Stocks plunge 1,250 points on no-trust move rejection

KARACHI: Pakistan stocks plunged by 1,250 points on Monday after a no-confidence motion against the prime minister was rejected by deputy speaker a day earlier.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,902 points from last Friday’s closing of 45,152 points, down by 1,250 points.

READ MORE: Weekly Review: market to relax after no-confidence vote

Analysts at Topline Securities said that the equities witnessed a selling spree today on the backdrop of Political Drama took place yesterday in the National Assembly where the motion of “Vote of No-Confidence” dismissed by the Speaker and subsequent dissolution of Assemblies by Prime Minister dented investors’ confidence regarding the continuation of current economic measures.

The KSE-100 index initially opened on a negative note, stayed in a red zone throughout the day and closed at 43,902 (-1,250 points; down 2.77 per cent) for the day.

READ MORE: Pakistan stocks gain 223 points amid volatile trading

During the trading hours, investors opted to offload their positions in the environment of higher uncertainty with regards to country’s political setup going forward.

Analysts at Arif Habib Limited said that the KSE-100 Index experienced a blood bath session throughout the day due to political unrest. A significant decline was observed in the volumes of the market as well. Across the board selling was witnessed. Main board volumes remained subdued. On the flip side, hefty volumes were recorded in the 3rd tier stocks.

READ MORE: Pakistan stocks gain 591 points amid political unrest

Cements, Banks, Tech and OMC sector’s stocks contributed negatively today to the benchmark index where LUCK, HBL, TRG, PSO & MEBL lost 367 points, cumulatively. On the flip side, COLG, HIGHNOON & ATLH have seen some buying interest today as they added 34 points collectively, today.

About 169.7 million shares traded on Monday at the bourse while total value clocked in at Rs. 5.4 billion. TELE was the volume leader of the day with the trading of 17.3 million shares in it, today.

READ MORE: Pakistan equities shed 101 points on political uncertainty

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