Big fall of 2,000 points in Pakistan Stock Exchange, know the reason behind it

By Sudhakar Yadav February 9, 2024 5:08 PM IST
Pakistan Stock Exchange - India TV Paisa
Photo:FILE Pakistan Stock Exchange

Pakistan Stock Exchange (PSX) A big decline was recorded today. The benchmark KSE-100 index fell more than 2,000 points on Friday. The reason for this big decline is being said to be uncertainty regarding the results of the general elections 2024. The country’s capital market benchmark KSE-100 share index fell below 62,000 points during intraday trading, down 2,145.53 points or 3.34 per cent, Geo News reported. Capital markets expert Muhammad Sohail said the index fell 3 percent due to the “unexpected” results of the elections.

There was tremendous momentum before the elections

The stock market rallied a day ahead of general elections in Pakistan on hopes that the country’s credit rating would improve. But on Friday, the trading volume remained very low due to investors being cautious on the day of election results. S&P Global Ratings is expected to review Pakistan’s sovereign rating after the elections if the new government shows commitment to fiscal reforms and the International Monetary Fund (IMF) programme, Geo News reported. It can be increased to ‘B’.

What are market experts saying

Another senior analyst said investors want a stable government to be formed and political uncertainty to end. “I think the market will go up again once the results become clear. Whatever is happening right now is temporary,” the analyst said. On the other hand, if there is a hung majority, then there will be a hurdle in the way of fiscal consolidation and the ruling party will be forced to take populist decisions.

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