PSX suffers losses as KSE-100 index drops by more than 1.58%

KSE-100 index loses 1,840.96 points dropping to 114,414.16 points during intra day trading.

Listen to article

The Pakistan Stock Exchange (PSX) saw a significant decline today, with the KSE-100 index shedding 1,840.96 points, or 1.58%, to current index at 114,414.16 during intra day trading.

The index reached a high of 116,843.41 points during the day but ultimately failed to maintain its upward momentum, dipping to the low of 114,414.16 points by the end of trading.

Despite the negative movement in the index, trading activity remained high, with 184,728,288 shares exchanged, leading to a turnover value of approximately PKR 14.77 billion.

The PSX's previous close was recorded at 116,255.12 points, reflecting a substantial drop in market performance during the intra day.

Yesterday, the Pakistan Stock Exchange (PSX) experienced significant turbulence on Monday, driven by political uncertainty and institutional profit-taking, amid concerns over the International Monetary Fund’s (IMF) strict levies and upcoming economic reforms.

The KSE-100 index peaked at an intra-day high of 1,148 points but later dropped to an intra-day low of 1,645 points, ultimately closing at 116,255.13, reflecting a 1.13% decline.

Market sentiment was further dampened by issues such as the deteriorating financial health of state-owned energy companies, rising circular debt, and ongoing challenges in Balochistan.

Analysts pointed to the subdued economic growth of 0.92% for July-September 2024 and the looming challenge of securing a $1 billion IMF loan tranche in March, contributing to investor pessimism.

Profit-taking was widespread, especially in the cement sector, and stocks such as Oil and Gas Development Company (-3.84%) and Pakistan State Oil (-5.12%) were major drags on the index.

Trading volumes decreased, with 819.8 million shares traded, compared to 935.8 million the previous day.

Despite these challenges, foreign investors bought shares worth Rs159.9 million, and a $20 billion World Bank loan package for Pakistan is expected to provide long-term support for key sectors like healthcare, education, and climate resilience.