The Pakistan Stock Exchange (PSX) witnessed a continued decline for the third consecutive session following the general elections, with the benchmark KSE-100 index dropping close to 1,400 points.
During intraday trading, the KSE-100 index reached 59,674.31 points, marking a loss of 1,391 points or 2.28% compared to the previous close of 61,065 points.
Over the past three sessions, the index has experienced a significant downturn, plummeting by 4,017 points or 6.2%.
Analysts attribute this decline to the prevailing uncertainty surrounding the formation of the government post-elections. Samiullah Tariq from Pak-Kuwait Investment Company highlighted the loss of investor confidence due to this uncertainty.
Muhammad Sohail, CEO of Topline Securities, echoed similar sentiments, attributing the market downturn to the unexpected election results diverging from pre-election expectations.
Khurram Schehzad of Alpha Beta Core emphasized the importance of concrete decisions by winning political parties to restore investor confidence and stimulate market recovery. He stressed the need for clarity regarding the economic team’s plan and direction to address key economic challenges.
Following a delay of nearly six months, Pakistanis cast their votes on February 8, but instead of providing political clarity, the results have led to confusion. Independent candidates backed by the Pakistan Tehreek-e-Insaf (PTI) secured the highest number of seats, with the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) trailing behind.
While the PTI has opted to sit in the opposition rather than forming a coalition government, the PPP and PML-N are engaged in discussions for government formation, further adding to the uncertainty in the political landscape.
