In a bearish turn of events, the Pakistan Stock Exchange (PSX) experienced a dominant presence of bears on Wednesday, resulting in a significant drop of 341 points in the benchmark KSE-100 index.
The market opened on a positive note, but the bears gradually gained control, leading to a downward trajectory by the end of the trading day. Analysts at Arif Habib Limited noted a negative session at the PSX, with various factors contributing to the decline.
The benchmark KSE-100 index concluded the day at 41,331 points, witnessing a decline from the previous day’s closing value of 41,672 points. The bears’ triumph was attributed to several factors, including market speculation surrounding new tax measures anticipated in the upcoming budget. This uncertainty prompted investors to secure their profits, causing the market to lose its bullish momentum.
Multiple sectors contributed to the overall market performance. Technology & Communication suffered a significant decline of 86.6 points, followed by the Cement sector, which experienced a drop of 67.9 points. Exploration and Production (E&P) sectors also witnessed a decline of 51.5 points, while Chemical and Fertilizer sectors experienced losses of 27.0 points and 18.9 points, respectively. Despite the overall market downturn, the cement sector managed to remain in the limelight.
Trading volumes decreased from 197.7 million shares to 158.1 million shares, representing a 20.0% decrease compared to the previous trading day. Similarly, the average traded value witnessed a decline of 4.6%, amounting to USD 21.4 million compared to the previous day’s value of USD 22.5 million. These figures indicate a cautious approach from investors amid the prevailing market conditions.
Several stocks made significant contributions to the trading volumes. Companies such as WTL, MLCF, FCCL, TRG, and CNERGY garnered substantial trading activity during the session.
Given the prevailing market volatility, the PSX is expected to remain uncertain in the coming days. Investors are eagerly awaiting more clarity regarding the upcoming budget and its potential impact on the market. As developments unfold, market participants will closely monitor the situation and make informed decisions based on the available information.