ISLAMABAD: The KSE-100 index recorded over 750 points decline on Monday during the intraday trade after uncertainty surrounded Pakistan’s political arena.
Investors reacted with panic to the sharp increase in value of dollar and depreciating Pakistani rupee and political uncertainty in the wake of the preliminary results of the by-polls in Punjab.
At the beginning of the trade, the market started at 42,074 points, but later at 1:14pm, it plunged over 750 points, hitting 41,329 points.
Pakistani rupee also reached a new low on Monday against the US dollar — and is being sold at Rs216 in the interbank market, five rupees higher than previous working day’s closing.
Analysts believe that “a lot of ifs and buts” have been created as the PTI has cracked more seats than the ruling PML-N in the Punjab Assembly by-polls.
“If early elections are announced, it would further trigger uncertainty over the International Monetary Fund’s (IMF) programme although a staff-level agreement has been reached.
The IMF’s pre-conditions include further hike in the gas and electricity tariff, for which the federal cabinet is yet to give approval.
