Pakistan stocks plunge eight-month low on weak forecasts

May 26th, 2008 - 2:46 pm ICT by admin  

A file-photo of Pervez Musharraf
Karachi, May 26 (DPA) Pakistan stocks plunged by 4.5 percent to an eight-month low Monday, dropping 578 points by mid-day trading on mounting political uncertainties and weak economic outlook, analysts said. The benchmark KSE-100 Index plunged for the second straight trading day, after declining by 4.5 percent Friday, when it shed 615 points.

“There is an immense selling pressure in the market,” said Zafar Moti, chief executive of Zafar Moti Securities.

Dealers blamed the weak domestic economy and political uncertainty arising from mounting tensions between Pakistan’s newly elected parliament and embattled President Pervez Musharraf.

In addition to domestic factors, the Karachi bourse is also falling in line with an overall Asian scenario where all major markets are down from Taipei to Singapore due to rising inflation and oil prices, analysts said.

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