The KSE-100 Index fell about 1,000 points, or 2.16 percent, intraday, plunging below the 45,000 mark as political uncertainty and the Ukraine crisis pushed equities deep into the red.
The KSE-100, which serves as a barometer of market performance, has been under selling pressure from the start, falling to a low of 44,160.01 points at the time of writing this report, with volumes staying low.
According to market speculation, the current Ukraine crisis is the primary cause of investors’ dump-and-run strategy on the Pakistan Stock Exchange (PSX).
Khurram Schehzad, CEO of Alpha Beta Core, told Geo.tv that worldwide oil prices—which surpassed $100 a barrel for the first time since 2014—weighed on investors’ morale.
“Rising international oil prices have the potential to have a detrimental impact on Pakistan’s inflation, current account deficit, and circular debt, “he said, adding that uncertainty breeds negativity.
According to the expert, it is critical for Pakistan to take a balanced stance on the issue of Ukraine, since we are already members of the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).
“Our primary source of commerce, particularly exports, investment, and debt, is from and with the United States,” he said. As a result, Pakistan has to be especially careful and balanced at the moment. “
The index has been under a lot of pressure since the start of this rollover week, when the opposition started trying to get a no-confidence vote against Prime Minister Imran Khan. This was seen as bad news for stock market investors.
Analysts think the stock market will stay under pressure until a deal is made in Ukraine.