Stocks fall as political crisis erupts

Karachi: Pakistani stocks fell yesterday after the second-largest party in the governing coalition joined the opposition, depriving the government of a majority and raising the prospect of an early poll.

The Karachi Stock Exchange's benchmark 100-share index was down 1.6 per cent at 11,833.68 points, on turnover of 16.1 million shares, by 9:59 a.m. "There is nervousness in the market and foreign investors are closely watching what direction the economy and politics will take now," said Khaled Iqbal Siddiqi, director at Invest & Finance Securities Ltd.

The Muttahida Qaumi Movement said on Sunday its decision to go into opposition had been taken because of the government's fuel prices policy. It means the opposition now has the numbers to force a no confidence vote against Prime Minister Yousuf Raza Gilani.