Selling pressure was witnessed at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100, feeling the effect of deeper political turmoil, witnessed a decrease of over 450 points on Tuesday after the arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan by law enforcement agencies outside the Islamabad High Court (IHC).

The benchmark KSE-100 Index saw a sharp fall at around 2:30pm when reports first surfaced that the PTI chairman and former prime minister was arrested in the Al-Qadir Trust Case by National Accountability Bureau (NAB).

Across-the-board selling was witnessed among the index-heavy sectors including, automobile, cement, chemical, commercial banks, oil & gas exploration companies and OMCs trading in the negative zone.

KSE-100 snaps 13-session winning streak, falls over 400 points

At close on Tuesday, the KSE-100 Index settled at 41,373.81 level, a decrease of 455.68 points or 1.09%.

“This is a developing situation,” Saad Khan, Head of Securities IGI Securities, told Business Recorder. “However, such negative news is problematic for the investors, as this would increase political instability,” he added.

The analyst said that the market is already depressed, and the current development would only worsen the situation.

“Foreign investors have already exited, domestic investors remain but they would also run off looking at the situation,” said Saad.

Arif Habib Limited (AHL), a brokerage house, in a note said that the market had opened with subdued sentiment as well.

“The stocks further tumbled following the arrest of former Prime Minister Imran Khan resulting the index to lose 551.76 in intra-day trading.

“Investor participation remained reasonable as decent volumes were recorded across the board while 3rd tier stocks remained in the limelight,” it added.

Sectors driving the benchmark index downwards included banking (109.45 points), oil and gas exploration (78.30 points) and fertilizer (56.31 points).

Volume on the all-share index rose to 203.1 million from 179.1 million on Monday, while the value of shares traded increased to Rs5.85 billion from Rs4.76 billion recorded in the previous session.

WorldCall Telecom was the volume leader with 31 million shares followed by National Bank with 10.6 million shares and K-Electric Limited with 8.3 million shares.

Shares of 329 companies were traded on Tuesday, of which 73 registered an increase, 245 recorded a fall and 11 remained unchanged.

Comments

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Kashif ALI May 09, 2023 07:08pm
Please, don't report incorrectly. The fall of Stock market owes nothing to do with arrest of IK. Go to PSX website and get the second-wise trend of Index trading trend. Market was down by 400 to 500 points throughout the session. Had it been impacted so much, it would have fallen down by 1000 to 1500 points. The negativity in the market owed much more to worries about our financial stability than the arrest of a politician. I can provide you the real time data of PSX trading session today.
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Pakistani May 09, 2023 07:51pm
@Kashif ALI, are you blind? look at the KSE's fall at 2:30. dont need stupid people like you
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Tulukan Mairandi May 09, 2023 08:44pm
Total crash
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Kashif ALI May 09, 2023 11:07pm
@Pakistani, Mind your language. I follow the data closely for 6 hours. If you don't have manners to talk, don't argue. Rather go to school to learn manner and be a good human. You understand????
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Pakistani May 09, 2023 11:33pm
@Kashif ALI, what language, its people like you because of whom Pakistan is in this mess, spreading fake news and stupidity. And no, i dont understand, that is the best part about being on a keyboard. get lost
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TimeToMovveOn May 10, 2023 02:52am
@Pakistani, VS @Kashif ALI.... is a microcosm of a country that is at war with itself. The reason for the PSX crash has to do with the macro fact that the country is not cohesive. Everyone is out to get everyone else. The only thing that unites Pakistan is the dead horse, Kashmir!
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TimeToMovveOn May 10, 2023 04:22am
I really don't care what happens within Pakistan. But it has been a ride watching this country for the last 25 years. Pakistan's obsession with Kashmir gave the army the excuse to make itself more powerful. And when the army became powerful with the promise of delivering Kashmir, they took away democracy, took away the economy, and took away Pakistan's dignity. Today the country is lost, has no roadmap for progress, and civil war is imminent. Ayaz Amir, the great reporter, wrote in Dawn in 1998, and those words are more true now than ever: "Pakistan has sacrificed its identity on the alter of Kashmir. These were not mine; this was a Pakistani visionary who saw today. May Pakistan forge ahead with its quest for Kashmir with renewed zeal and continue with maximum vigor, its principled stand on Kashmir for another 75 years.
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