A day after a joint investigation team submitted its final report to the Supreme Court on Pakistan Prime Minister Nawaz Sharif and his family’s financial history in the Panama Papers probe, Pakistan Stock Exchange reacted negatively on Tuesday. The benchmark KSE-100 index had plunged over 1,300 points, going from 46,273 at 9:30 am to 44,969 by 9:35 am ─ a drop of nearly 2.83 per cent, soon after the trading day started, according to a Dawn report.
The market further fell deeper to 44,221 points, a drop of 4.43 pc or 2,052 points until afternoon and its losses had swelled to 2,153 points (4.65pc) by the close of trading. Total KSE-100 volumes clocked in at 104 million shares, worth Rs 8.24 billion.
On Tuesday, share value and volumes were lower than Monday’s share market when it had risen 1,000 points. Only 24 and 10 out of 368 symbols traded on Tuesday, advanced and remained unchanged respectively leaving the remaining symbols red. Since January this year, the market has dipped 7.5 per cent.
In its report, the team had found “glaring disparities” between Sharif and his family’s known sources of income and their actual wealth. JIT had also probed Panamagate graft case against Sharif in April last year.
Several of the top stocks closed at or near their lower locks before trading was suspended for the day, reported Dawn.
In recent years, Pakistan’s stock market has consistently shown an upward trend. The main KSE index has gained close to 400 per cent since 2009, and 40 per cent in 2016 alone. In 2016, Country’s economy grew close to 6 per cent , up from 4.8 per cent in 2015, and inflation at 4 percent, down from 10 per cent four years ago. But the allegations that Pakistan is witnessing a higher number of corruption cases, has frightened the investors, reported Forbes.
The JIT has recommended that the National Accountability Bureau open a reference against Sharif and family. The report has suggested that a reference should be filed against Sharif and his sons Hassan Nawaz and Hussain Nawaz, as well as daughter Maryam Nawaz, under Section 9 of the National Accountability Bureau (NAB) Ordinance 1999. In the probe, the investigation team has found that the assets of all four respondents are more than the sources of their income.