KSE-100 plummets over 1,200 points in intra-day trading

There was no respite for the local currency as it crossed Rs170 mark against the green back in inter-bank market. PHOTO: FILE


KARACHI:

The Pakistan Stock Exchange experienced a hammering on Wednesday and the KSE-100 index dived over 1,200 points in intra-day trading as threat of sanctions by US shattered the market sentiment.

On Tuesday, a group of high-profile US senators moved a bill in the US Senate seeking imposition of sanctions on the Afghan Taliban that could also potentially extend to Pakistan.

Besides, there was no respite for the local currency as it crossed Rs170 mark against the green back in inter-bank market and traded at around Rs172 per dollar in the open market.

At 12:33 PM, the KSE-100 index was trading at 44,316.27 points after a fall of 958.66 points or 2.12%.

Speaking to The Express Tribune, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said that the dip was driven by geo political concerns and the threat of US sanctions on Pakistan.

Federal ministers of Pakistan have condemned the bill which circulated in the US Senate on Tuesday, he said. He was of the view that fall in the value of rupee had little to no impact on the direction of the market.

Echoing his views, Alpha Beta Core CEO Khurram Schehzad stated that geo-political concerns, particularly at a time when the International Monetary Fund is due to review Pakistan’s economy, hammered the KSE-100 index and dragged it downward.

He added that statements by US had the potential to influence the direction of the market as well as impact the upcoming review of Pakistan by IMF for the release of sixth tranche.

“In addition, investors’ panic over the drop in rupee against the US dollar is also being reflected through the plunge in the market,” he said.