Stocks sink by over 2,200 points amid uncertainty over govt formation

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a steep decline during the early morning trading as the benchmark KSE-100 fell by over 2,200 points on Monday amid uncertainty regarding the formation of a new government.

The benchmark index decreased by 2,232.91 points or 3.55% to trade at 60,710 points, down from the previous close of 62,943 points.

Samiullah Tariq, the head of research at Pak-Kuwait Investment Company, attributed the loss to the “uncertainty regarding the formation of the government”.

On February 8, Pakistan conducted its 10th general elections with a large number of Pakistan Tehreek-e-Insaf (PTI) backed independent candidates clinching victory.

The PSX on Friday plummeted over 2,000 points initially due to the uncertain outcome of the general elections held on February 8.

However, the market managed to recoup some losses by the day’s end, closing 1.87% lower at 62,943 points.

Market analysts, such as Muhammad Sohail of Topline Securities, attributed the initial decline to the “unexpected” election results, which deviated from pre-election expectations.