Summary Investors sold their shares in panic after the government decided to prevent PTI and PAT’s march.
KARCHI (Web Desk) – The benchmark Karachi Stock Exchange plunged by 1,309 points to 28,071 on Monday, reversing weeks of positive performances that saw it touch a 68-year high.
Investors were selling their over-bought shares in panic after the government decided to prevent PTI and PAT’s march scheduled on August 14.
The drop came as the capital of Islamabad braces for protest marches led by cricketer-turned politician Imran Khan and cleric Tahir-ul-Qadri who have vowed to topple the government of Prime Minister Nawaz Sharif.
The two plan to march on August 14 accompanied by tens of thousands of supporters, claiming that last year's general election was rigged.
Both protest rallies will be held on Thursday when Pakistan celebrates its independence day.
"This is the largest ever fall in the stock value in one day as panic grips investors," said Farhan Mahmood, a research analyst at Karachi-based Sherman Securities.
Pakistan's economic outlook has generally improved since the government of business-friendly Sharif came to power.
Foreign exchange reserves have doubled from $7 billion to $14 billion following succesful negotiations with the International Monetary Fund for debt servicing assistance, the sale of bonds, as well as auctions for 3G and 4G licences.
In July, ratings agency Moody's upgraded Pakistan's country outlook to 'stable' from 'negative' citing its improving external liquidity position and commitment to reforms.
