KARACHI: After falling over 1,000 points early Wednesday, the Pakistan Stock Exchange bounced back later in the day, with the KSE 100-index settling at 43,980 points around 2pm. When the index dropped by over 1,000 points in the morning, it was feared that Wednesday’s performance would mirror the day before’s, when the index plunged over 2,100 points.
Analysts blamed the uncertainty surrounding the prime minister’s future in light of the Panama case Joint Investigation Team (JIT) report submitted to the Supreme Court on Monday for the recent declines.
Nearly all leading opposition parties have called on Prime Minister Nawaz Sharif to resign from his post. Even though senior government officials, in a press conference on Tuesday night, asserted that the premier will not be resigning and instead prove his innocence in court, the stock market continues to dip.
The Supreme Court will begin hearing the case following the JIT’s report submission on July 17. Stock market experts said the market is reacting to the political uncertainty prevalent in the country.
On Tuesday, the KSE 100-index declined by over 2,100 points representing a loss of Rs425 billion, with share values of 305 companies falling as a result.
On Monday, the day the JIT report was submitted, the KSE-100 index experienced a gain of 2.33% or 1,051.66 points, to close at 46,273.81 points.