KSE-100 index plunges over 2,000 points as uncertainty surrounds election results

The Pakistan Stock Exchange (PSX) began the day on a negative note as the benchmark KSE-100 index plummeted over 2,000 points on Friday amidst uncertainty surrounding the results of the 2024 elections.

During intraday trading, the KSE-100 shares index, the cornerstone of the country's capital market, dipped below the 62,000 mark, shedding 2,145.53 points or 3.34%.

Capital market expert Muhammad Sohail attributed the 3% decline in the index to the "unexpected" outcomes of the elections.

Just a day before the general elections in Pakistan, stocks had closed on a higher note, driven by a pre-election rally and optimism regarding a potential upgrade in the country’s credit rating. However, trading volumes remained thin as investors exercised caution.

On Wednesday, the PSX saw an increase of 344.85 points or 0.54%, closing at 64,143.87 points. The day's highest index reached 64,196.62 points, while the lowest level was recorded at 63,927.29 points.

S&P Global Ratings is expected to reassess Pakistan’s sovereign rating post-elections, with reports suggesting a possible upgrade to ‘B’ if the new government demonstrates commitment to fiscal reforms and an International Monetary Fund (IMF) program.