KARAHI: The business community and economic experts have termed the disqualification of Sharif brothers a big domestic political upheaval which would derail the process of economic growth, hurting the pace of industrial development and production activities.
The capital market of Pakistan would face another fresh wave of political uncertainty, carrying potential risks for the positive and improved macroeconomic outlook. Therefore, the next few months are going to be crucial for the overall prospects of the economy, economic experts told TheNation on Wednesday.
The first victim of the disqualification decision was the Karachi Stock Exchange. Before the announcement of the decision, the KSE was moving in the positive zone, but as the news of disqualification hit the market, the equities hit the lower locks, landing the investors into a serious problem.
The KSE-100 index quickly lost 294 points and it closed at 5580 points. In other words, the KSE 100-index lost 5 per cent of its worth immediately after the announcement of the SC verdict. The stock market analysts are of the opinion that the market could face selling pressure for another couple of days because of political uncertainty triggered by the disqualification of Sharif brothers.
The stock market witnessed a positive trend in the morning session on Wednesday by gaining above 50 points and a massive change in political activities altered the whole scenario that threw the shares to the bottomline, said Shahid Ali, CEO Habib Metropolitan Financial Services (HMFS). The investors offered for sale their stakes but the buyers sidelined from the market while anticipating more erosion in the value of equities. The volume of KSE-100 index stood at 145.42 million shares, slightly higher than 135.55 million shares traded a day before. However, the market capitalization fell to 36.89 billion dollars (0.94 per cent) on Wednesday when compared with 37.24 billion dollars on Tuesday.
Courtesy: The News
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