The world’s largest financial and investment community, Wall Street, every now and then has attempted to predict the outcome of various events, political and otherwise. This practice has become so mainstream that Wall Street actually came up with a product called “The Prediction Market.” The prediction markets generally trade the outcome of various events. From elections to any upcoming policy, the prediction markets trade everything. Although, the case of Pakistan is different, but every stock market guru was predicting the likely impact of Panama case verdict on the stock market.
Experts assumed that Panama case verdict will negatively affect the stock market, but after the announcement of the decision, the market reaction was contrary to the popular predictions. History tells us that the stock market usually reacts in a certain manner to political uncertainty in the country.
Today, history repeated itself, but momentarily. The stock market tumbled over 1,000 points at the start of the trading session. Traders at the floor witnessed a nosedive in the opening twenty minutes of KSE-100 index, losing almost 1,135 points. However, the index managed to recover somewhere around 45,000 mark a while after the Supreme Court’s judges announced the fate of the prime minister.
It has been reported that bears dominated the market during the first session and the benchmark KSE-100 index started the trading session with 45905.76 points, but by the second session it dropped to 44235.94 and now recovered to 45912.79.
This is a developing story and we will updated accordingly.