The uncertain political situation prevailing in the country after the departure of former Prime Minister Nawaz Sharif has gripped the stock market. KSE-100 index shed 485 points on Tuesday as local investors remained cautious about the political situation of the country, especially after the arrival of Tahir-ul-Qadri, Chairman Pakistan Awami Tehreek.
The participation of foreign investors was almost negligible as they preferred to stay away from the market until the political situation improves. A lot of rallies and public gatherings are expected with the arrival of Tahir-ul-Qadri. Even Nawaz Sharif has planned a march from Islamabad to Lahore via the GT Road where the former premier will be addressing his party workers at various points.
Experts are predicting that the stock market will continue to perform like this throughout the week due to the political unrest in the country. Until the political situation in the country improves, the market will continue to be volatile with cautious investments from both local and foreign investors. Net selling by foreign institutional investors amounted to PKR 381 million according to the National Clearing Company of Pakistan.
Trading activity throughout the day remained thin in the market with only 205 million shares being traded as compared to 241 million shares traded on Monday. Total shares traded were down by 15% from Monday and 41% from the last week. KSE-100 index closed at 45,979, down by 1.05%.
Summit Bank led the session and traded 27 million shares followed by K-Electric and TRG with 17 million and 16 million shares, respectively. Shares of 384 companies were traded. By the end of the trading session, 75 stocks closed higher, 295 declined while 14 remained unchanged.
Pakistan State Oil (PSO) after posting profit of PKR 18 billion hit the upper lock (5%) as the oil sector gained points after stability in the international market. Pakistan Petroleum and Pakistan Outfield also finished the day on positive outlook with increase of 0.19% and 1.20% respectively.