Karachi: A severe decline was observed in the Pakistan Stock Exchange on Friday, the day after the general elections, as the delay and uncertainty surrounding the general election results sent shockwaves through the market, with the benchmark KSE-100 index plummeting over 2,000 points
The Pakistan Stock Exchange on Friday witnessed a decline of of 2,362.11 points or 3.8% during the first half of the intraday trading, with the KSE-100 index dropping down to 61,781 points.
However, by 3:15 pm, the index managed to claw back some ground, although it still remained down by 1,045.72 points or 1.63%, hovering at 63,098.15.
Analysts pointed to the unexpected election outcomes and the ensuing delay in result clarity as key factors contributing to the market downturn. Economic analyst Muhammad Suhail highlighted the impact of the uncertainty, noting that as the electoral picture becomes clearer, market volatility is expected to ease. He stated that the index dropped by over 3 percent due to the unexpected results of the elections.
The disparity between pre-election surveys and the actual results, coupled with the necessity for coalition-building among smaller parties, further exacerbated investor concerns, leading to a decline in index-heavy stocks like OGDC and PPL.
On the other hand, the dollar’s value further depreciated against the Pakistani Rupee by 17 paisas in the Interbank, after which the dollar price reached 279 rupees and 25 paisas.