Supreme Court’s decision: Karachi Stock Exchange crashes

The stocks at Karachi Stock Exchange (KSE) took a nosedive Tuesday and fell by three percent after the Supreme Court ordered the arrest of the prime minister over possible corruption charges.

The Karachi Stock Exchange’s (KSE) benchmark100-share index ended 3.16 percent, or 525.29 points, lower at 16,107.89.

Investors, who were already trading cautiously due to a protest march led by Tahirul Qadri in the capital of Islamabad, aggressively sold shares after the announcement that the court had ordered the arrest of Prime Minister Raja Pervaiz Ashraf.

It is only the fourth time that the Karachi Stock Exchange has fallen by more than 500 points. The last time was in May 2008, when equities fell due to the impact of global financial crises.

Trading volumes remained high due to extreme volatility. Investors will be closely watching further political developments, said a stock dealer.

Fauji Cement fell 4.12 percent to 7.75 per share while Byco Petroleum was down 3.35 percent to 12.70 per share. D.G. Khan Cement dropped 4.62 percent to 51.00 per share and Engro Corporation fell 4.55 percent to 82.00per share.

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Posted by Web Desk on Jan 16 2013. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.