Political, border tensions lead to 948-point plunge at PSX.


KARACHI -- The stock market slumped on Thursday as the KSE-100 index nosedived over 1,100 points in intra-day trading and closed below the 41,000-point mark. The battering came as a result of growing tensions along Pakistan-India border and a detailed verdict issued in ex-president Pervez Musharraf case, which dampened investor sentiment. Late on Wednesday, Indian army chief hinted that the situation at the Line of Control could escalate anytime, which prompted a quick response from the DG ISPR who said Pakistan would respond befittingly to any Indian misadventure or aggression. Moreover, the death penalty imposed on former president Pervez Musharraf by the special court further dented the mood. Analysts had earlier expected a correction in the market, citing overbuying in previous weeks. In the morning, trading began with a short-lived spike but then the market continued to move downwards till the end of trading. Near the close of the session, the market saw a steep plunge and all the index-heavy sectors ended with a loss. At close, the benchmark KSE 100-share Index recorded a decrease of 948.34 points, or 2.28%, to settle at 40,655.37. 'Fast growing tensions on Pakistan-India border have badly played on investors' mind,' Arif Habib Limited Head of Equity Sales Saad bin Ahmed told The local news paper. Moreover, the death sentence awarded to former president Pervez Musharraf by a special court of law also added to tensions on the political front, he said...

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