PSX crashes: Shares down 1200+ points due to political turmoil

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Marred by the political turmoil in the country, the Pakistan Stock Exchange (PSX) crashed, shedding over 1200 points during intraday trading on Tuesday.

At around 03:05 pm, the KSE-100 Index was hovering around 38,479.44, after a decline of 1240 points, or -3.13%.

Market watchers also attribute the sharp plunge to the prevalent stalemate in talks with the International Monetary Fund (IMF) about the resumption of the bailout program.

Across-the-board pressure was witnessed as investors looked to offload their holdings in the face of rising political volatility and economic uncertainty in Pakistan.

First National Equities Limited Director Amir Shehzad said the market was already under pressure because of political uncertainty as Khyber Pakhtunkhwa Chief Minister Mahmood Khan is expected to send a summary to the governor to dissolve the provincial assembly today.

The KSE-100 index had closed 684 points down last week due to political uncertainty after Punjab Chief Minister Parvez Elahi formally advised the governor to dissolve the provincial assembly.

The Punjab Assembly stood dissolved on Saturday and a caretaker chief minister is yet to be appointed. The KP Assembly is also expected to be dissolved soon as part of the opposition’s strategy to force the government to hold early general elections.