Stocks bleed amid political turmoil
KSE-100 index dives 2,049 points as economic, political concerns weigh
KARACHI:
The Pakistan stock market saw a massive sell-off in the outgoing week as the benchmark KSE-100 index nosedived 2,049 points, or 4.5%, in the worst weekly rout in the past one year.
It was the biggest weekly decline since the week ended March 27, 2020 when the market plunged 8.34%.
The KSE-100 index settled at 43,788.08 at the end of trading week on Friday, March 12, 2021, following a bear rampage that dented investor sentiment. The sell-off continued for four successive sessions as panic and uncertainty reigned.
Mainly the growing fear of a third wave of Covid-19, political uncertainty amid the Senate chairman election and Pakistan’s efforts to meet pending conditions of the International Monetary Fund (IMF) loan programme took their toll on the bourse, which lost significant ground.
In yet another step towards the formal revival of the International Monetary Fund (IMF) loan programme, the government is set to introduce in parliament a fresh bill for the restructuring, liquidation and privatisation of state-owned entities (SOEs).
The government has finalised the draft SOE Bill with the close coordination of the IMF, Asian Development Bank (ADB) and the World Bank to ensure better management of the SOE portfolio.
As part of the process, the government last week finalised a triage of 84 out of a total of 212 SOEs that would be prepared in the first phase of restructuring for ultimate privatisation, liquidation or retention in the public sector to meet a structural benchmark of the IMF.
Market watch: Stocks dive on political uncertainty
Benchmark KSE-100 index falls 786.29 points to settle at 45,051.06
PHOTO: AFP
KARACHI:
Bears returned to the stock market on Monday as investors offloaded shares in the wake of political uncertainty, which triggered a plunge of nearly 800 points in the KSE-100 index.
With some positive news flow, the market traded in a wide range and moved between intra-day high and low of 595 and 988 points respectively.
Initially, there was some optimism, which was attributed to the success of Prime Minister Imran Khan in securing the vote of confidence from the National Assembly on Saturday.
However, macroeconomic concerns impacted the investment climate negatively and sent investors to the exit door, who dumped stocks to seek shelter.
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