100 Index opens to PTI's resounding win in General Elections

KSE 100 Index will today react to the Pakistan Tehreek Insaaf’s (PTI) resounding win at yesterday’s General Elections, 2018. Pakistani investors, used to watching Pakistan Peoples’ Party (PPPP) and Pakistan Muslim League (N) at the center, face a significant amount of uncertainty as PTI lacks any precedent for policies on a national level.

According to unofficial results, PTI has won over more than 110 seats at the National Assembly (NA), Pakistan Muslim League (N) with 64 seats and Pakistan Peoples’ Party Parliamentarian (PPPP) trailing at third spot with 43 seats in the NA.

KSE 100 Index closed the previous session (July 24, 2018) on a positive note by gaining more than 875 points when it closed the session on 41,339 points. A total of 191 million shares traded hands, with a total value clocking in at Rs. 7.7 billion. Pakistan International Bulk Terminal (PIBTL) led the volumes chart with 19.14 million shares traded; up by 36.59 percent.

Despite more than 15 hours since the voting process stopped, there has been official announcement from the Election Commission of Pakistan (ECP) on the final results. The results circulated in the media are independent and based on initial research by these media houses. However, the official results and the delay in the announcements thereof have put question marks on the fairness of the entire project. Some parties have alleged interference from non-democratic forces to influence the final tally.

After gaining necessary votes to form a government, the incumbent party has a mountain of tasks ahead of it. Falling reserves, increasing deficits, rising inflation, stalling private sector credit offtake, lack of utilities to the general public, shortages in housing sector, quaint bureaucratic culture, foreign policy failures and inefficient markets among others.