KSE-100 sheds over 1,000 points after SC summons heads of three banks

Pakistan Stock Exchange’s (PSX) KSE-100 index plunged by 1,000 points or 2.5 percent on Monday at intra-day trading soon after Supreme Court summoned heads of three private banks

The Supreme Court summoned the heads of banks after money-laundering through fake accounts made rounds in the market. Banking sector and power sector were the hardest to hit, with all the major scrips falling in red zone.

The court directed the Federal Investigation Agency (FIA) to produce the chief executive officers (CEOs)/president of three banks - Summit Bank, Sindh Bank and United Bank Limited - before the court on July 12.

Meanwhile, the Ministry of Interior has been ordered to place names on Exit Control List (ECL) so that they cannot leave the country. The court stated Rs7 billion equity amount that Summit Bank deposited in State Bank of Pakistan (SBP) can't be withdrawn without the permission of apex court.

UBL, one of the three banks whose CEOs are to be produced, lost Rs7.33 or 4.5 percent. Summit Bank also lost 14 percent of its value in intra-day trading.

At 1:30pm on Monday, the KSE100 index sits 39,133.59 points losing 1,150.55 points.