Karachi, September 11, 2024 – The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday as bears took control of the market, pushing the KSE-100 index down by 635 points.
The benchmark KSE-100 index closed at 78,652 points, a 0.80% drop from the previous day’s close of 79,287 points.
Analysts at Topline Securities Limited attributed the volatile market movement to a clash between bullish and bearish forces throughout the trading session. Despite some early gains, the bears ultimately prevailed, leading to a significant drop in the KSE-100 index by the end of the day.
Profit-taking was observed in selective sectors, including Exploration & Production (E&P), banking, and fertilizer, which dragged the index lower. Key stocks like Mari Petroleum Company Limited (MARI), Bank Al Habib Limited (BAHL), MCB Bank Limited (MCB), Meezan Bank Limited (MEBL), and Engro Fertilizers Limited (EFERT) collectively lost 315 points, contributing heavily to the overall decline.
However, some pockets of the market experienced buying interest. Stocks such as Oil and Gas Development Company Limited (OGDC), Dawood Hercules Corporation Limited (DAWH), and Pak Elektron Limited (PAEL) collectively added 54 points to the index, though this was not enough to offset the losses incurred by other sectors.
Trading volumes remained robust, with over 532 million shares changing hands during the day. The total value of shares traded amounted to Rs 14.7 billion. WorldCall Telecom Limited (WTL) led the volumes chart, with more than 80.9 million shares traded, reflecting significant investor interest in the stock.
Market observers noted that the overall mood was dominated by caution, as investors looked to capitalize on recent gains through profit-taking in key sectors. The downward trend in global markets, coupled with local economic concerns, further contributed to the bearish sentiment. Despite the slight buying in some stocks, the overall market momentum remained negative, leading to the sharp decline in the KSE-100 index.
Analysts believe the market may remain under pressure in the near term, as investors assess both local and global economic conditions. The outcome of ongoing discussions with the International Monetary Fund (IMF), along with potential developments in the oil and gas sector, could influence market sentiment in the coming days.
For now, investors are expected to remain cautious, with selective buying likely in fundamentally strong stocks, while others may continue to witness selling pressure.
