Karachi: Bearish trend dominated the trading floor on Monday as shares at the Pakistan Stock Exchange (PSX) declined by more than 1,500 points because of heightened political tensions.

The benchmark KSE-100 index shed 1370.56 points, or 1.71 per cent, to stand at 78,747.33 points around 12pm from the previous close of 80,117.89 points. Finally, the index closed at 78,539.18 points, down by 1578.71 points or -1.97pc, from the previous close.

‘Heightened political tensions and media reports on banning Pakistan’s largest and most popular political party have dragged down sentiment,’ Yousuf M Farooq, director of research at Chase Securities, told a private news channel.

‘Moreover, after a large rally, a correction was due and heightened political noise has become a reason for a correction,’ he reasoned.

This was seen as an attempt to prevent the PTI from becoming the single largest party in the NA.

‘Investors are worried about the increased political tension resulting from the potential ban on the main oppos
ition party amid geopolitical pressures,’ Awais Ashraf, director research of AKD Securities, said.