PSX slips further, wipes out week's gains

KSE-100 index drops by 1.07% or 1,190.90 points after hitting a high of 111,745.02 points during intra-day trading.

Listen to article

The Pakistan Stock Market faced a notable decline on Thursday, with the index dropping by 1.07%, current index at 109,879.39, at 11:30am

The market saw a high of 111,745.02 earlier in the day but fell to a low of 108,398.42 in the intra day of trading.

Volume reached 183,992,732, reflecting a relatively active trading session.

The previous close was recorded at 111,070.29, and the market's value stood at 18,542,601,570.

Despite reaching its peak earlier, the market's negative movement left investors concerned, as the overall change amounted to a decrease of 1,190.90 points.

The PSX began the week on a bullish note, with the KSE-100 index briefly soaring past 117,000 points during the week, marking a historic high for the market.

Earlier on Wednesday, the Pakistan Stock Exchange (PSX) faced a significant crash, with the KSE-100 index plummeting by 3,790 points (3.30%), closing at 111,070.29.

This drop marked one of the largest single-day declines in history. The market experienced high volatility, briefly touching 116,236.70 before falling to 110,896.27.

Key factors contributing to the decline included concerns over stock overvaluation, currency depreciation, global equity market drops, and the ongoing discussions between the Pakistani government and the IMF regarding taxes and structural reforms.

Major sectors like fertiliser, oil and gas, and banking were the biggest contributors to the slump.

The bearish sentiment was amplified by political instability, the weaker rupee, and the unresolved IMF targets.

Local mutual funds, which had been net buyers for the past 14 sessions, turned into net sellers. Despite the decline, certain stocks like Pakistan State Oil and Indus Motor showed gains. Trading volume stood at 1.11 billion shares with a value of Rs60 billion.

Experts noted that the decline was driven by profit-taking activities in key sectors, revenue shortfalls, and weak global oil prices.

While the market showed a sharp fall, analysts remain optimistic about the long-term prospects, citing the market's resilience and strong fundamentals.