KARACHI: The Karachi stock market crashed on Monday after Prime Minister Nawaz Sharif announced that the federal government will proceed against former president Pervez Musharraf under Article 6 of the constitution.
The market opened in the positive territory but came under severe selling pressure following the announcement by the prime minister.
At 12:57 pm, the benchmark Karachi Stock Exchange 100-share index was trading at 21,071.60 points, down 626.75 points, or 2.89 percent. Over 110 million shares changed hands by that time.
“Investors fear that the government move may result in friction between state institutions leading to political instability,” said a senior dealer.
Dealers said that market outlook looks bearish in the short term.