KSE-100 Falls 1,300 Points in Intra-Day Amid Fears of Sanctions

The KSE-100 index slid by around 1,300 points in intra-day trading today, fueled by fears of US sanctions. On Tuesday, a number of media reports stated that US senators had moved a bill to impose sanctions on Afghanistan’s Taliban government. At the end of the day, the KSE-100 index was closed at 44,366 points after a fall of 908 points or 2.01%. News anchorperson, Kamran Khan, tweeted, “Credible sources say that the SECP, with the help of the PSX administration, has immediately launched an investigation into the conspiracy behind intense selling in the market based on an 8-week-old political statement by a US Congressman in the PSX.” Around 467 million shares were traded at the exchange, with 304 of the 382 active scrips declining in value, only 67 advancing and 11 remaining unchanged. Next Capital Limited CEO Namjam Ali also tweeted about the matter, saying, “Market reacting on USA senate bill on Afghan issue, which is dated August 15, 2021. Some punters have found this bill to be useful after 6 weeks to create panic in the market. US relationship is an ongoing issue, and I have no doubt Pakistan will successfully manage the situation.” Top Volumes   Pak-Kuwait Investment Company Head of Research, Samiullah Tariq, told a national daily that the deterioration in sentiment was caused by the threat of US sanctions and other geopolitical instability concerns. He added that he did not believe that the Pakistani Rupee’s (PKR) depreciation was contributing to the fall in the KSE-100 index. Alpha Beta Core CEO, Khurram Schehzad, said the fall was driven by geopolitical worries in the days leading up to scheduled talks with the International Monetary Fund. He explained that statements by US officials and politicians had enough influence to drive changes in Pakistan’s stock market. Schehzad was of the view that the PKR’s fall was also driving the index’s fall. He said, “In addition, investors’ panic over the drop in rupee against the US dollar is also being reflected through the plunge in the market.”