KARACHI: The Pakistan Stock Exchange came under heavy selling pressure on Monday as renewed political tensions triggered a sharp decline in investor confidence.
The benchmark KSE-100 index fell 1,876.97 points, or 1.12%, to 166,278.52 by 12:28pm, compared with the previous close of 168,155.49.
The index touched an intraday low of 166,167.79, representing a decline of 1,987.70 points or 1.18%. Its highest level during the session was recorded at 167,918.36.
The market faced pressure from the opening bell, with the benchmark losing more than 1,600 points during the initial minutes of trading. By 9:43am, the index had dropped to 167,606.83, down 548.66 points or 0.33%, before losses widened.
The sell-off came as political uncertainty increased following the failure of government-PTI talks to reach an agreement. PTI has continued with its planned march towards Islamabad, raising concerns about renewed political confrontation.
Differences over counterterrorism policy and arrangements for a meeting with jailed PTI founder Imran Khan remained among the major issues in the negotiations.
Investors also remained focused on developments in international oil markets. Crude prices declined as higher Middle Eastern exports and a planned release of emergency oil stocks by G7 countries improved expectations of global supply.
Lower oil prices could potentially provide some relief to Pakistan’s external account and inflation outlook. However, the development failed to offset the impact of domestic political uncertainty on market sentiment.
Trading remained active during the session, with around 72.4 million shares changing hands by midday. The total traded value stood at approximately Rs4.55 billion.
