The General Elections, the broader market displayed indifference to a statement released by the Petroleum Division, Ministry of Energy on Sunday evening. Notably, index-heavy OGDC and PPL suffered significant losses, dragging the KSE-100 down under selling pressure.
On Monday, the KSE-100 plummeted, deeply affected by the unexpected election results and concerns over transparency. The index shed over 1,000 points, following a 1,200-point decline on Friday, post-election.
By approximately 10:50 am, the KSE-100 stood at 61,900.43, marking a substantial drop of 1043.31 points, nearly 1.7%.
The announcement from the energy ministry regarding discussions with the International Monetary Fund (IMF) and the anticipation of further progress in debt reduction and tariff rationalization plans contributed to market pessimism. Reports indicating the IMF’s reluctance to approve these plans added to the downward pressure, particularly affecting OGDC and PPL shares.
Moreover, uncertainty regarding future governmental strategies weighed heavily on investor sentiment, especially as political parties maneuvered to secure support amidst independent candidates’ significant victories.
Market analysts emphasize the necessity for clarity in various governmental aspects for stability and investor confidence. Brokerage house Arif Habib Limited (AHL) stressed the need for clarity in government formation, key ministries’ portfolios, constituency results, and the circular debt resolution plan.
Last week, the market witnessed a mixed trend, with cautious investors refraining from new positions due to delayed election results and uncertainty regarding the new government’s formation. The KSE-100 index experienced a marginal decrease of 59.17 points on a week-on-week basis, closing at 62,943.75 points.
