Stocks fall as political noise gets louder
KARACHI: Stocks slumped on Wednesday with the KSE-100 index sinking by 337 points (0.77per cent) to close at 43,353.
While foreign investors’ selling in the preceding two sessions sat heavily on the investors’ mind, disconcerting factors on the political front further clouded sentiments.
The news of US referring Pakistan for the terrorist watch list through Financial Action Task Force (FATF) caused panic among investors, who reckoned the threat as the first step towards putting sanctions on Pakistan.
“Although in reality FATF clearly maintained that it does not have powers to impose sanctions on any country, yet the fear factor was enough to push investors towards taking negative bets across the board”, stated Arif Habib Securities.
Reports of the National Accountability Bureau asking the Ministry of Interior to place former Nawaz Sharif on the Exit Control List (ECL) also worried investors of the heating up of political environment.