KARACHI: The Karachi Stock Exchange (KSE) 100-index on Monday slid below the psychological barrier of 40,000 points as it dropped 233.28 points in the day closing at 39.844.02 points amid the political uncertainty in the country that has evaporated investor confidence.
Despite the heavy rains flooding most parts of Karachi on Sunday, including the stock exchange building, the market opened for trading on Monday morning. However, the ongoing political uncertainty in the country led to investors losing confidence and the index started dropping nearly as soon as the morning bell was rung.
The index lost around 347.5 points in the opening session. This meant that the index, which had opened at the 40,077.30 points level, sunk below the 40,000 points psychological barrier in the first hour.
However, the index made slight gains after the midday break to rise to 39,816.73 points.
In the post-midday session, the index dipped to a day low of 39,720.80. This was close to the level of 39,632.52 points at which the index had closed on November 23, 2020.
Before the end of the day, however, investors took advantage of the bears to re-consolidate and indulge in some opportunistic buying which helped the index recover around 123.22 points to rise to 39,844.02 points before the closing bell was rung.
On the way there, there was a momentary dip in the index to 39,815.21 points.
Monday also saw just 75 million shares traded, the lowest volumes in 29 months since February 2020.
Last week, the index saw severe bearish trends, with the index cumulatively losing around 2,000 points.
Seasoned stock market brokers suggested that the current bearish trends in the market are due to the poor economic situation in the country and political uncertainty.