Pakistan Stock Exchange’s (PSE) benchmark KSE-100 index has sunk by 750 points mainly due to political uncertainty in the wake of the results of the by-elections in Punjab.
At the beginning of the trade today, the market started at 42,074 points, but later at 1:14pm, it lost over 740 points and reached 41,329 points.
Moreover, the Pakistani rupee also reached an all-time low against the US dollar. The greenback was being sold at Rs216 against the local currency at 3:12pm in the interbank market.
The dollar had closed at Rs210.95 last week, making this a sharp increase. The last peak was reached on June 22, when the dollar hit Rs211.93 against the rupee, after which it had begun to decline for a brief period and fell to a low of Rs204.56 on July 4.
“Following the results of the by-polls, there’s an uncertainty in the market on whether the federal coalition government will continue or will it announce snap polls. If early elections are announced, then it would trigger uncertainty over the International Monetary Fund’s (IMF) curial programme as well,” Arif Habib Limited Head of Research Tahir Abbas told a news outlet.
“Now that it (PML-N) has lost its heart — Punjab — it remains unclear what it is going to do next. If the federal cabinet does not approve the hike [in gas and electricity prices], then the IMF programme’s revival will remain in danger,” he added.