The Pakistan Stock Exchange (PSX) slides below the 40,000 mark on Tuesday, with KSE-100 Index losing more than 1200 points during the intra-day trade due to political instability.
The second day of the business week began from 40,970.82 after a continuous depression market had lost 1206 points till the second session of commercial activities.
Currently, the KSE-100 index is trading at 39,533.03 points with a decline of 2.94% compared to the beginning.
Market reacting to “bad political news”
In the aftermath of political uncertainty, the stock market crashed below the 40000 benchmark with country’s current situation reflecting in the market of Pakistan.
Financial experts attribute the stock markets ongoing slide to a reaction to “bad political news”. Many experts cite that the index fell due to fear of the dissolution of Punjab and Khyber Pakhtunkhwa assemblies. The ongoing political tension and uncertainty jeopardizes the investor confidence.
Opposition parties of the Punjab Assembly Pakistan Muslim League Nawaz (PMLN) and Pakistan Peoples Party (PPP) on late Monday, submitted a no-confidence move against Chief Minister Chaudhary Parvez Elahi.
This development comes days after former PM Imran Khan’s planned dissolution of provincial assemblies in Punjab and Khyber Pakhtunkhwa.
Soon after the no-confidence motion was submitted, Governor Punjab Baligh ur Rehman directed Chief Minister (CM) Chaudhry Pervaiz Elahi to seek a vote of confidence from Punjab Assembly on December 2
On the other hand, Pakistan’s forex reserves fall and the declining value of the rupee, and the shortage of dollars also influence the situation.
The delay in the completion of the International Monetary Funds (IMF) ninth review caused the crash in the market.
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