KSE-100 plunges as confusion surrounds Sindh Rangers’ extension
KARACHI – The KSE-100 Index dropped drastically to a low of roughly 550 points during the day’s trading on Monday, on the back of falling crude oil prices in the international market and political uncertainty resulting from a deadlock between the federal and provincial governments on extension of the Rangers’ policing powers, analysts said.
The session started at 33,048.51 but fell to 32,504 by 2:12pm, a drop of over 1.63 per cent. It earlier fell about 459 points but made a crawling recovery during the day’s trading before dropping nearly 200 points more.
“The political uncertainty that looms with no decision on Rangers yet has caused some panic among investors,” said Umer Pervez, head of Research at AKD Securities.
But regional markets have also been suffering, with crude oil prices falling, he said. A US Federal Reserve meeting – scheduled for tomorrow – has also had a downward impact on markets across the world, according to Pervez. “With the Fed expected to increase rates, global portfolios will be repositioned after a long time,” he said.