According to Pakistan's Dawn newspaper, individual small investors dealing with 'penny stocks' were responsible for panic selling on Wednesday, the day KSE-100 index fell 569 points to 39,771 as reports of India retaliating emerged.
Pakistan Stock Exchange has been dominating the social media trends and has been under pressure ever since there have reports of retaliation from the Indian government in the aftermath of Uri attack in which terrorists killed 18 soldiers. The attack has been criticised by both Indian as well as foreign policy makers.
According to Pakistan’s Dawn newspaper, individual small investors dealing with ‘penny stocks’ were responsible for panic selling on Wednesday, the day KSE-100 index fell 569 points to 39,771 as reports of India retaliating emerged. Former Karachi Stock Exchange chairman Arif Habib blamed the ‘hype’ surrounding a possible confrontation with India as the primary cause behind Wednesday’s fall. The KSE-100 index rebounded 364 points on Thursday and raced past the 40,000 level once again to close at 40,135.31. At 12.20 pm IST on Friday, the index was trading 0.31 per cent down at 40,010. The KSE-30 index was also trading 0.33 per cent down at 22,250.
The Pakistan Stock Exchange (formerly known as Karachi Stock Exchange) KSE100 Index comprises the top company from each of the 34 sectors on the PSX, in terms of market capitalization. The rest of the companies are picked on market cap ranking, without any consideration for the sector to make a sample of 100 common stocks with base value 1,000.
In latest move, Pakistan flew its F-16 fighter jets over Islamabad to tackle any possible retaliation from India. The country has also cancelled all state-run airline to Gilgit-Baltistan on Wednesday and the aviation regulator had closed the airspace over the region.
Pakistan Prime Minister Nawaz Sharif in his United Nations General Assembly speech on Wednesday had called for a “serious and sustained” dialogue with India after the Uri attack. Indian envoy to the UN Eenam Gambhir in a reply said “What my country and our other neighbours are facing today is Pakistan’s long-standing policy of sponsoring terrorism, the consequences of which have spread well beyond our region.”