One can see the sentiment of KSE from recent news that after continuous fall in KSE since April 20, yesterday KSE started negative, rose around 240 points after Gillani interview (on Tuesday morning) where he said that he likes President Musharraf and would follow his policies: [KSE has lost around 3400 points since April 20. It is worse crash than ever (and within 5 weeks). Maximum KSE lost in past was 2900 points (March-May 2005), but that was not loss as it was index correction because even after that loss of 2900 points, KSE was above what it was in January 2005 … and nevertheless, KSE recovered all those losses by end of the year (giving over 50 percent rise during the year 2005 .. from Jan to Dec 2005)].
Here is what Gillani said:
http://www.dawn.com/2008/05/27/welcome.htm
‘I like Musharraf’s support for democracy’: PM Gilani ISLAMABAD, May 27 (APP): Prime Minister Yusuf Raza Gilani has said what he likes most in President Musharraf is his support for democracy and his straight-forwardness. “He (Musharraf) supports democracy. He is very frank, straight-forward,” Gilani said in an interview with a private television channel Tuesday. Gilani said his government would support the policies of the previous government if these coincided with the PPP manifesto - issues like Women Protection Bill and women’s representation in assemblies. However, Gilani said he has made changes in the policy in respect of war against terror with focus on finding root cause of the problem rather than use of force alone. Gilani said he also believed that the March 9 step by President Musharraf against the judiciary had cast a negative impact on his political goodwill. Talking about the challenges confronting the present government, Gilani mentioned electricity and flour crises, law and order situation and inflation. On upcoming budget, the Prime Minister said focus would be on primary education, basic health facilities and increase in wages. (Posted @ 16:40 PST)
But rumour today (Wed, 28 May) that President is going to resign turned the sentiment bad again and KSE lost around 570 points today (GEO News).
Here same is mentioned in ‘The News’ too, where it says that just buzz by PPP and PML(N) about impeaching President Musharraf is causing jitters in KSE and making the investors run out of Pakistan with their money (seems they have already transferred over 25 billion dollars out of Pakistan during last 3 months … since election result).
KARACHI: Karachi Stock Exchange (KSE) on the first trading day of the week today witnessed yet another landslide pulling down the KSE-100 index by over 500 points and the market crashing below even the 12,500 marks.
Whether the ruling parties would be able to muster enough support for the impeachment of President Musharraf or not, but the very buzz has left the market completely shaken and shattered, as the newly elected government appears to have completely lost the confidence of the entrepreneurs and investors from within and outside the country, who are no longer willing to make any fresh investment and instead draining their capital out of the country for the last three months, which the analysts conservatively estimate at a mammoth $25 billion. No wonder, the rupee slumped down to the lowest ever at over Rs70 to a dollar in a brief period of about three months.
The market opened today with chips down by 300 points and finding no good news in sight due to the worst ever turbulent political and economic situation in the country, while economic managers kept talking about further stringent measures such as levy of the CVT triggered another bout of panic selling, which saw the index fast reeling down to 12,494, slashed by over 517 points.
The bears kept ruling the roost, while the small investors struck by heavy losses seem totally lost and kept steering in a state shock at the market board showing all companies reaching their lower locks and placed in red zone. KSE-30 index also declined by 650 points and was seen traded near 14605 points.