By Ali Imran
ISLAMABAD: Investors continued to practice their dump-and-run approach as the KSE-100 index fell nearly 500 points, falling to a 26-month low level with political uncertainty and lack of positive triggers doing enough to push stocks deep in the red.
The KSE-100 index — a benchmark for market performance — underwent selling pressure from the word go, dipping to a low of 39,276.70 points with volumes remaining on the lower side.
At close, the benchmark KSE-100 index fell by 489.56 points, or 1.23%, to settle at 39,342.89 — this is the lowest level after November 2, 2020. Market talk suggested that the ongoing uncertainty regarding the no-confidence motion against Punjab Chief Minister Parvez Elahi is the chief reason behind investors’ dump-and-run approach at the Pakistan Stock Exchange (PSX). The index has been under immense pressure since the last week when former prime minister Imran Khan announced that the Pakistan Tehreek-e-Insaf will dissolve Punjab and Khyber Pakhtunkhwa assemblies on December 23, which was widely seen as a negative for stock market investors.
Subsequent heavy net selling by foreign investors, coupled with the constant depreciation of the rupee and delay in the International Monstery Fund programme, has led to panic selling with the index shedding close to 5% in the last three sessions.
Analysts and followers expect that the stock market is likely to remain under pressure unless clarity emerges on the political front.
