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Weekly review: KSE remains under pressure due to political impasse

Weekly review: KSE remains under pressure due to political impasse

KARACHI: The Karachi Stock Exchange (KSE) 100-index has lost 16.36 points in the weeklong trading, as it opened at 30044.89 points on Monday and closed at 30028.53 points on Friday. The KSE witnessed bearish trend most of the days as the market kept on fluctuating amid investors’ concerns for political uncertainty and economic losses on account of devastating floods, especially in Punjab.

Financial experts were of the view that stocks closed lower amid cautious activity ahead of State Bank of Pakistan’s policy rate decision this week. “Trade remained in second and third-tier stocks because of the concerns over Rs 230 billion of circular debt in energy sector,” they added.

On first day of trading, Monday, KSE gained only 25.24 points to reach 30070.13 points as the deadlock in dialogue between government and PTI and PAT, was worsening the weeks-long political uncertainty in federal capital.

The Karachi Stock Exchange KSE-100 index on Tuesday in its buoyant mood added to its yesterday gains, taking the points tally to 110.17 to reach 30180.30 points.

The market opened with positive sentiments and kept on marching upward amid flurry of hectic politicking in the federal capital as Pakistan Tehreek-e-Insaf (PTI) chief Imran Khan said that police were arresting his supporters on the grounds of attending the sit-ins and made the police release his arrested workers who he claimed were unlawfully held.

Though the political scenario remains hazy, stocks continue to capitalize on the developments taking place across the political spectrum on that day.

On Wednesday, market lost 75.31 points to reach 30104.99 on as the ongoing political unrest spread confusion among the investors.

On that day, flood peak in Chenab River crossed Panjnad without harming it, but wreaked havoc deep into the heart of southern Punjab.

The Karachi Stocks plunged 42.41 points to stand at 30094.16 points, as indiscernible effects of institutional profit-taking, political uncertainty and flood devastation kept the KSE-100 index in red zone

Friday was also not a good day for KSE; it lost 65.63 points to stand at 30028.53 points on the last day of trading. The market opened with a positive note and added 48 points at start, the tone remained sluggish amid flurry of political developments. Then KSE-100 index went down 21.2 points in the midday trading and lost 65.63 points to stand at 30028.53points till the closing of market.

Experts see the market to remain sluggish as Friday is the last working day in the market. They do not expect any bull run to lift the confidence of the investors. The market remained fluctuating, depicting the prevailing uncertainty across different spheres whole week.

Meanwhile, the opposition political jirga tested the government’s flexibility by proposing that Prime Minister Nawaz Sharif should announce in advance that he would quit if a judicial commission proves ‘systematic rigging’ in the May 2013 elections.

“The prime minister may state that he will resign from office if systematic rigging is proved and if it is established that he became the prime minister as a result of such rigging following an inquiry by the proposed judicial commission,” read a four-page letter that the jirga sent to Prime Minister Nawaz Sharif, PTI Chief Imran Khan and the PAT Chief Dr Tahirul Qadri.