The arrest of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan in the Islamabad High Court amidst the ongoing political uncertainty had a significant impact on the country’s stock market.
The market witnessed its worst decline during the opening session, with the 100 index falling 318.89 points at around 10 am, which continued to decline further. By noon, the bearishness had reached the level of 286 points.
However, after Imran Khan’s arrest at around 12:00 noon, the market recorded its worst decline, causing investors to adopt a watch-and-wait policy. At the end of the day’s trading, the Pakistan Stock Market recorded a major decline of 455.68 points, a decline of 1.09% in business, and the index closed at 41373.81 points.
During the trading session, 104.57 million were transacted as compared to 68.75 million, resulting in investors suffering losses of more than Rs80 billion.
Economists attribute the hesitation of investors to sell shares due to the uncertain political situation caused by the general elections in Punjab and the arrest of former Prime Minister Imran Khan. They also cite the pending agreement with the International Monetary Fund (IMF) as a cause of uncertainty that is contributing to investors’ worries regarding Pakistan’s default.
Experts predict that if the political situation remains unstable, the worst downturn can be recorded in the coming days.
