PSX slides 685 points amid political uncertainty after Punjab by-polls

KARACHI: The Pakistan Stock Exchange (PSX) on Monday shed 685 points during the early hours of trading as political uncertainty looms following PTI’s landslide victory in Punjab by-polls, ARY NEWS reported.

The KSE-100 index lost 685 points, declining below the 4200 mark to trade at 41,389.

Other than the PSX, the forex market also witnessed the impact of political uncertainty after the US dollar reached a record high against the rupee in the interbank.

According to forex dealers, the dollar gained value by Rs3.79 against the rupee in the interbank and traded at Rs214.74. In the open market, the greenback traded between Rs215 and Rs216.

It is pertinent to mention here that Pakistan Tehreek-e-Insaf (PTI) has emerged victorious in the majority of the seats in the crucial by-polls on the 20 Punjab Assembly seats.

According to the unconfirmed and unofficial results, results of 20 seats have been finalized, with PTI clinching 15 and PML-N winning just four.

The results have made PTI the leading party in the Punjab Assembly along with PML-Q, paving way for the removal of CM Punjab Hamza Shahbaz, further creating problems for the PM Shehbaz Sharif-led federal government.

The PSX responded positively during the last week when the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility (EFF).

A statement issued by the Fund said that the agreement is subject to approval by the IMF’s Executive Board.

“Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$7 billion.”