Pakistan Stock Market bled hard today losing 800 points and trading Rs 21bn of shares today. The upset over the loss of Finance Minister’s Senate election has jolted the political stability. The ruling coalition has bagged lesser than expected seats. More importantly, opposition parties cite it as a win. Fearing the low morale, Prime Minister has called for a vote of confidence vote on Saturday to address the uncertainty once and for all. Some opposition members have remarked that they don’t want early elections either. PTI has nominated Sadiq Sanjrani (ex-Chairman) for the post of Chairman once again to reduce risks of further upset.
Highest activity was recorded in KEL (-3.6%) with 33.1mn shares traded, GGL (+5.2%) with 28.7mn shares and TRG (-3.3%) with 25.8mn shares traded. Today, NESTLE (+0.3%) and INDU (+0.1%) closed in the positive territory among the KSE-100 constituents.
Stock market started near floor levels only to recover mildly but to crash hard again by the end. Almost all of blue chips or growth stocks closed 3-4% negative today as fears crammed in. However, we feel Prime Minister might be able to successfully win vote of confidence and Sadiq Sanjrani could garner enough support for Chairman slot. We expect tomorrow to be flattish to red although as inertia of selling lingers on. Monday should start on a good note!