In a dramatic turn of events, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index experienced a significant drop of 1,700 points during early morning trading on Friday, directly attributed to the unfolding results of the general elections.
The PSX website reported a staggering plunge of 2,278 points shortly after the commencement of trading. Although the index showed signs of recovery, it ultimately recorded a loss of 1,720.27 points or 2.68%, settling at 62,423.60 points by 9:30 am, compared to the previous day’s close of 64,143.87.
Market analysts pointed out that, in anticipation of a PML-N-led coalition government, the market had based its expectations on pre-election surveys. However, the initial unofficial results challenged these expectations, leading to increased uncertainty among investors.
Ali Malik, the CEO of First National Equity, expressed that the market had initially anticipated a politically stable government post-election. However, the emergence of numerous independent candidates complicating the formation of the next government has created confusion among investors.
Malik highlighted the prevailing uncertainty as the primary driver behind the market’s downturn, emphasizing that investors were reluctant to buy and inclined towards selling. He underscored the need for clarity in election results to provide investors with a clearer understanding of the political landscape and potential market stability.
