Political Uncertainty Triggers KSE-100 Plunge by Over 1,100 Points

In a bearish trading session on Friday, the Pakistan Stock Exchange (PSX) witnessed a sharp downturn as the benchmark KSE-100 Index plummeted by over 1,100 points, marking a decline of 1.74%. The index, which stood at 61,601.37 at 4:25 pm, experienced across-the-board selling, affecting major sectors such as automobile assemblers, cement, chemical, commercial banks, oil and gas marketing companies, oil and gas exploration companies, refineries, and pharmaceuticals.

The decline followed a positive close on Thursday, where late-session buying contributed to a gain of 246 points, settling the index at 62,693.57. However, the resurgence of bears in the market was attributed to a surge in political uncertainty.

Experts pointed to heightened volatility on the political front, triggered by the Supreme Court's approval of bail for former Prime Minister Imran Khan and ex-Foreign Minister Shah Mahmood Qureshi in the cypher case. The three-member bench, led by Justice Sardar Tariq Masood, granted bail against surety bonds worth Rs1 million each. Currently incarcerated in Adiala Jail, Imran Khan and Qureshi's legal developments played a significant role in influencing market sentiment negatively.

The KSE-100 downturn occurred amid a global backdrop of stocks poised to make gains in the final full trading week of the year. MSCI’s Asia-Pacific shares outside Japan saw a 0.3% increase in early trade, contributing to marginal weekly gains. Japan’s Nikkei experienced a 0.2% rise, and the euro surpassed $1.10.