In a dramatic turn of events, the Pakistan Stock Exchange (PSX) experienced a sharp decline during early morning trading today. The benchmark KSE-100 index plummeted by 1,103.90 points or 1.75%, leaving investors and market analysts on edge. The index now stands at 61,839.84 points, down significantly from the previous close of 62,943 points.
The primary cause behind this market turmoil is the uncertainty surrounding the formation of a new government. As Pakistan conducted its 10th general elections on February 8, a large number of Pakistan Tehreek-e-Insaf (PTI)-backed independent candidates secured victory. However, the election results deviated from pre-election expectations, triggering a wave of uncertainty in the financial markets.
Market experts, including Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, attribute the stock market’s decline to this political ambiguity. Just a few days ago, on Friday, the PSX had already witnessed a significant drop of over 2,000 points due to the uncertain election outcome. Despite some recovery by the end of the day, the market closed 1.87% lower at 62,943 points.
Investors and traders are closely monitoring the situation, hoping for clarity regarding the government’s formation. As the nation awaits official announcements, the stock market remains volatile, with implications for both local and international investors. Stay tuned for further updates as the situation unfolds.