Shares at the Pakistan Stock Exchange (PSX) initially gained but ended in the red on Tuesday, plunging over 3,200 points due to political unrest. Early in the trading session, the KSE-100 benchmark had climbed 1,431.29 points, a 1.46% increase, reaching 99,511.07. However, by the close, it had fallen sharply to 94,854.81 points.
Mohammed Sohail, CEO of Topline Securities, linked the downturn to concerns about an opposition protest by PTI in Islamabad.
The political climate remains charged as PTI’s ‘do or die’ protest continues. The capital is under lockdown, and the internet is being disrupted. The government has deployed Rangers and other security forces to thwart the protest.
Read: Federal Government Deploys Army in Islamabad to Manage PTI Protest
Yousuf M. Farooq, Director of Research at Chase Securities, also cited political factors as a cause of market volatility.
He noted that the market was initially buoyant due to a notice from the State Bank of Pakistan removing the minimum deposit rate for large depositors, which spurred a rally in the banking sector. Farooq suggested that this policy might lead large depositors to invest directly in T-Bills, PIBs, and Sukuks if banks fail to offer competitive rates.
Pakistan Stock Exchange – Key Statistics pic.twitter.com/421GL1Gw08
— Topline Securities (@toplinesec) November 26, 2024The PTI protest, intended for November 24, paused as leaders stated they were in no rush to reach the capital. Meanwhile, supporters nationwide faced arrests, baton charges, and tear gas as they tried to join the protest.
