The bears ruled the Pakistan Stock Exchange on Monday bringing down share prices massively due to the “political uncertainty” thrown up by the split mandate as a result of the general elections.
The share prices nosedived by 2122 points dragging the benchmark KSE-100 index down by nearly four percent, sinking investors Rs300 billion in just one day. The index was now trading at 60574, down from 62,943.
It should be mentioned that the index had plunged 1,200 points on Friday, over the delay in the announcement of the results of general elections.
Experts said the stock market opened under pressure on Monday due to “unresolved political uncertainty over the weekend”. They feared that the volatility would stay until there was clarity on the political front.
Exploration and production companies — such as Oil and Gas Development Company and Pakistan Petroleum Limited — experienced the largest decline due to delays in the approval of the circular debt clearance programme from the IMF, he said.
Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, attributed the loss to the “uncertainty regarding the formation of the government”.
