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PSX Crashes As Court Imprisons Ex-PM Imran Khan For 10 Years Before Elections

PSX Crashes As Court Imprisons Ex-PM Imran Khan For 10 Years Before Elections

The Pakistan Stock Exchange (PSX) witnessed a dramatic downturn today, as bears dominated the market following a special court’s decision to sentence both former Prime Minister Imran Khan and ex-Foreign Minister Shah Mahmood Qureshi to 10 years in jail merely a week before crucial elections.

Initially, the benchmark KSE-100 index exhibited a bullish trend, gaining over 280 points after the trading session resumed on Tuesday. However, the market sentiment quickly reversed after the announcement of the special court’s verdict.

Read more: 10-Year Sentence For Imran Khan, Shah Mahmood In Cipher Case

Commencing trade at 62,773 points, the KSE-100 index reached 63,058 at 10:41 AM before plummeting by a substantial 1,120 points to 61,653 by 1:10 PM. Subsequently, at 3:15 PM, it experienced another significant drop of up to 1,107 points, settling at 61,666. The day concluded with the index at 61,841, reflecting a decline of 1.48 percent or 932 points.

In addition to the KSE-100 index, the KMI 30 index also faced a downturn, shedding 2,047 points and settling at 103,546. Similarly, the KSE All-share index registered a decline of 768 points, closing at 41,909.

The market’s high activity was notably observed in K-Electric Limited (PSX: KEL), where over 52.8 million shares were traded. Following closely were Worldcall Telecom Limited (PSX: WTL) and Hascol Petroleum Limited (PSX: HACOL), with 29.2 million shares and 24.6 million shares traded, respectively.

The downturn in the stock market can be attributed to the adverse impact of the court’s decision on investor confidence. The sentencing of prominent political figures just ahead of the elections has created uncertainty and contributed to a bearish market sentiment. Investors appear to be reacting to the unfolding political developments, causing a substantial sell-off in the equity market.

As the market navigates the aftermath of the court’s verdict and with crucial elections on the horizon, the volatility in the PSX is likely to persist. The bearish trend reflects the immediate repercussions of significant political events on the financial landscape, emphasizing the intricate link between politics and the stock market in Pakistan.