KSE-100 Plunges 2,288 Points as Political Uncertainty Rattles Investors
KSE-100 Plunges 2,288 Points as Political Uncertainty Rattles Investors
The Pakistan Stock Exchange endured a bruising session on Monday as the benchmark KSE-100 index plunged 2,288 points, or 1.36 per cent, to close at 165,867. Heavy selling swept the market from the opening bell after the collapse of government-PTI talks and the start of the opposition’s long march deepened political uncertainty.
The index touched an intraday low of 165,764, down 2,391 points from the previous close of 168,155, before recovering slightly into the close. Trading remained volatile all day, with the benchmark swinging across a range of more than 2,150 points.
KSE-100 index: politics and oil weigh on sentiment
Market watchers linked the sell-off to the breakdown of negotiations between the government and the PTI over the weekend. With the opposition pressing ahead with its march towards Islamabad and differences over counterterrorism policy and access to jailed PTI founder Imran Khan unresolved, investors cut positions across key sectors.
Uncertainty over international oil prices added to the gloom. High crude prices have raised concerns about inflation and pressure on Pakistan’s external account, encouraging a cautious stance even though cheaper oil would normally ease the country’s import bill.
Selling was broad-based. Commercial banks led the decline, dragging the index down by 635 points, followed by investment banks, cement, oil and gas exploration companies, and power generation and distribution. Index heavyweights UBL, Engro Holdings, HBL, Hub Power and PPL were among the biggest losers, together accounting for about 705 points of the fall.
Bears dominate the board
Market breadth was sharply negative. Of the index companies, 91 closed lower, only eight finished higher and one was unchanged. Among the major losers, CPHL fell 9.35 per cent, followed by PSX itself at 9.07 per cent. POL bucked the trend with a gain of 1.16 per cent.
Around 442 million shares changed hands in the regular market, with a traded value of roughly Rs15.7 billion. Analysts said volatility is likely to persist until there is clearer political direction, steadier oil prices and guidance from the upcoming monetary policy announcement.
Why did the KSE-100 fall on Monday?
Investors reacted to the collapse of government-PTI talks and the opposition’s long march towards Islamabad, which raised fears of further political disruption. Uncertainty over global oil prices added to the selling pressure.
How far did the KSE-100 index fall?
The benchmark shed 2,288.18 points, or 1.36 per cent, to close at 165,867.31 on Monday. It touched an intraday low of 165,764.20 during the session.
Which stocks dragged the market down?
UBL was the biggest drag, taking 205.65 points off the index, followed by Engro Holdings, HBL, Hub Power and PPL. Commercial banks as a sector contributed the largest negative share of 635 points.
