The KSE-100 index dropped over 500 points due to political instability and a shortage of positive events.
The KSE-100 index closed at 39,342.89 points, down 489.56 points or 1.23 percent. It reached an intraday low of 555.75 points or 1.39pc, the lowest level after November 2, 2020.
According to market buzz, investors’ dump-and-run strategy at the Pakistan Stock Exchange is due to the no-confidence motion against Punjab Chief Minister Parvez Elahi.
The index has been under pressure since Imran Khan said last week that the Pakistan Tehreek-e-Insaf will dissolve Punjab and Khyber Pakhtunkhwa assemblies on December 23.
Heavy net selling by foreign investors, coupled with the depreciation of the rupee and delay in the International Monstery Fund scheme, has led to panic selling, with the index falling close to 5% in the last three sessions.
Analysts expect the stock market to remain under pressure until political clarity comes.