Uncertainty pertaining to the election results took a toll on the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 index lost over 2,000 points before making some inroads during the post-election trading session on Friday.
During the opening minutes of trading, the benchmark index plunged to a low of 61,781.76, a decrease of 2,362.11 points or 3.8%.
By 12pm, the KSE-100 regained some losses but was still down 1,112.42 points or 1.73% and was hovering at 63,031.45.
Experts attributed the decline to the general election results that surprised analysts as well as the delay in clarity.
“The delay in election results is driving the market down,” Sana Tawfik, analyst at Arif Habib Limited (AHL), told media. “As the picture gets clearer, uncertainty in the market will reduce,” she added.
Topline Securities said the “initial unofficial results of Pakistan’s general elections are slightly different from pre-election surveys and expert analysis.
“It is clear that no one party can form the government without the support of smaller parties.”
Index-heavy stocks including OGDC and PPL were trading in the red.
On Wednesday, the benchmark index had closed 345 points higher, a day before the general elections, aided by a late-session buying spree to settle at 64,143.87.
Conduct of the elections that remained generally peaceful but questions over the credibility of this electoral exercise continued to persist in the absence of mainstream political force Pakistan Tehreek-e-Insaf (PTI), and a delay in the election results issuance.
As per preliminary and unofficial results, PTI-backed independent candidates were ahead of their rival candidates in several NA seats early Friday.
Globally, Asian markets were mixed in holiday-thinned trade Friday as investors struggled to build on another record-setting day on Wall Street, with focus on the upcoming release of key US inflation data.