Pakistan election day.
Credit: Reuters Photo
Karachi: The Pakistan Stock Exchange’s benchmark KSE-100 index went down by 1,700 points on Friday as confusion prevailed over the results of the general elections in Pakistan.
Pakistan authorities are moving at a snail's pace to announce the election results that in a surprising development showed disqualified and jailed ex-Prime Minister Khan's Pakistan Tehreek-e-Insaf (PTI) party supported independent candidates leading the show.
A top financial analyst said that the KSE-100 index has plummeted because investors were looking to sell instead of buying due to the uncertain situation created after the elections.
“No one knows what is going to happen and who will form the next government so it is understandable how the investors are reacting today,” Hammad Zafar at Topline Securities said.
As results of the general elections continued to trickle in, the PSX website said the index plunged by 2,278 points shortly after trading began.
It then recovered slightly, losing 1,720.27 points, or 2.68 per cent, to stand at 62,423.60 points from the previous close of 64,143.87 by noon.
“Because of all the talk before elections the market is expecting a PML N government but the early results show people have different ideas,” Zafar Paracha, the head of the Pakistan Forex Association, said.
Another senior analyst said the investors wanted a stable government to be formed and the end to the political uncertainty.
“I think once the results are clear the market will go up again. Right now everything happening is temporary,” the analyst opined.