Daily Times

The Pakistan Stock Exchange (PSX) went downhill on Monday, posting its ninth-highest day-on-day (DoD) loss as jittery investors panic-sold amid concerns over the next regime and economy, dealers said.

The benchmark KSE-100 Shares Index lost 1,878 points to close level of 61,065, down 2.98% from the previous close of 62,943 points on Friday.

Arif Habib Limited in a note said the KSE-100 index remained in negative territory for two consecutive trading days following the election, experiencing a cumulative decline of 3,079 (down 4.8%).

During the intraday trade, the benchmark index plunged by 2,232.91 points or 3.55% to trade at 60,710 points.

Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, attributed the loss to the “uncertainty regarding the formation of the government”.

On February 8, Pakistan conducted its 10th general elections with many Pakistan Tehreek-e-Insaf (PTI) backed independent candidates clinching victory. The PSX on Friday plummeted over 2,000 points initially due to the uncertain outcome of the general elections held on February 8.

However, the market recouped some losses by the day’s end, closing 1.87% lower at 62,943 points.

Market analysts, such as Muhammad Sohail of Topline Securities, attributed the initial decline to the “unexpected” election results, which deviated from pre-election expectations.

This uncertainty triggered a massive sell-off, with the benchmark KSE-100 index losing 3% at its lowest point.

Alpha Beta Core’s Khurram Schehzad said the index continued its downward trajectory on the second-day post elections, largely due to uncertainty over the formation of the new government (a hung parliament) that could give some direction, clarity and outlook on handling pressing economic challenges facing the country ahead.

“In this regard, unlike the past trends, KSE100 went down in the two consecutive sessions after the elections, where values at the PSX eroded sharply,” Schehzad said.