Intraday Report: KSE-100 Drops 1.26% Amid Post-Election Chaos

The local equity market extended its downturn from the last session, with the benchmark KSE-100 index plunging to 62,149.52 by 10:05am, showing a decrease of 794 points or 1.26%.

The election outcome points to increased political instability, casting a darker shadow over growth and prospects for securing International Monetary Fund (IMF) aid the country needs to avoid default, said Bloomberg.

With no party winning a majority, and a strong performance by independents backed by Imran Khan (who is in jail and whose party was banned from running), the formation of a coalition government is likely to be challenging and chaotic, it added.

“The market needs clarity,” Bilal Khan, head of international sales at Karachi-based brokerage Arif Habib Ltd told Bloomberg.

“The election was on February 8 and we still don’t know who is forming the government,” he added.

Meanwhile, the government on Sunday dismissed the negative perception that was being created regarding the Circular Debt Reduction and Tariff Rationalization Plans.

Despite the clarification, Oil & Gas Exploration Companies sector was the biggest drag for the KSE-100 index, stripping off 369 points.

Other sectors contributing negatively to the index lower were Commercial Banks with 69.34, Power Generation & Distribution with 59.29, Oil & Gas Marketing Companies with 50.86, and Cement with 50.15 points.

Companies that dragged the index lower were OGDC with 198.25, PPL with 140.81, HUBC with 41.37, PSO with 36.19 and MARI with 29.05 points.

On the other hand, companies that added points to the index were SRVI with 12.73, MEBL with 6.48, SHFA with 2.84, LCI with 1.53, and FABL with 1.26 points.

In the broader market, the All-Share index was at 42,061.08 with a net loss of 520.53 points.

To note, the KSE-100 has gained 20,697 points or 49.93% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative decrease of 302 points, equivalent to 0.48%.