ISLAMABAD: The Pakistani stock market crashed on Wednesday, a few minutes after the Supreme Court allowed the trial of civilians in the military courts. The KSE-100 index plunged by 1098 points during intra-day trading, at 2:40 pm.
All this happened within a few minutes after the verdict of the Supreme Court.
Another bad news was the indictment of Imran Khan and Shah Mahmood Qureshi in the Cipher case on Wednesday.
The KSE-100 benchmark index which hit the record high level of 97,093 points during intra-day trading and fell to 65,328 points immediately after the court reversed its earlier decision, allowing trial of civilians in army courts.
During early intraday trading on Wednesday, the Pakistan Stock Exchange achieved a significant milestone as the KSE-100 Index surpassed the 67,000 mark. This remarkable surge was propelled by local investors redirecting their focus towards stocks following a sustained decline in the property sector.
The pivotal factor behind this surge was the State Bank of Pakistan’s decision, announced a day earlier, to maintain the key policy rate at 22 per cent. This decision has instilled confidence that there won’t be any further interest rate hikes in the near future.
Within just six minutes of the trading session, the benchmark index soared to 67,093 surpassing the previous closing of 66,426.78.
However, as of the latest update around 10:24 am, the KSE-100 Index was recorded at 66,778.88, reflecting a gain of 352.10 points, or 0.53 per cent.
Business leaders are eagerly anticipating rate cuts, as the high borrowing costs have rendered it challenging to sustain business operations at viable levels. This situation has hindered expansion efforts and the establishment of new ventures, thereby limiting the creation of much-needed employment opportunities.
The economic stagnation has also resulted in wage stagnation, exacerbating the impact of record-high and persistent inflation, coupled with a weakened rupee due to currency devaluation.
The latest decision of the Supreme Court, nonetheless, reversed the bullish sentiment in the stock market.
