Karachi, January 30, 2024 – The Pakistan Stock Exchange (PSX) faced a significant setback today as the benchmark KSE-100 index plummeted by 932 points amid persistent foreign selling, marking a second consecutive day of substantial declines.
In Tuesday’s trading session, the KSE-100 index closed at 61,842 points, reflecting a sharp decline from the previous day’s closing at 62,774 points. The market exhibited a high degree of volatility, with foreign selling being identified as a primary factor influencing investor sentiment.
Analysts at Ismail Iqbal Securities commented on the day’s market performance, noting that the equity market concluded on a bearish note due to the ongoing foreign selling pressure. This trend has been a cause for concern among investors, contributing to the overall uncertainty in the market.
The foreign sell-off, which had a notable impact on the stock market a day earlier with a 1,039-point drop, continued to weigh on market sentiment. Investors are closely monitoring the situation, attempting to gauge the broader implications of the sustained foreign selling.
Some market experts pointed to the upcoming general elections scheduled for February 8, 2024, as a source of uncertainty causing hesitancy among investors. The anticipation of potential policy changes and political developments may be influencing market participants, leading to a cautious approach in the lead-up to the elections.
Trading volumes saw a significant uptick, reaching 234 million shares on Tuesday compared to 162 million shares in the previous session. The increased activity suggests heightened market participation as investors adjust their portfolios in response to the evolving market conditions.
The KSE-100 index’s 932-point decline represents a 1.48 percent decrease on a day-on-day (DoD) basis. Several sectors bore the brunt of the market downturn, with commercial banks, fertilizer, and oil and gas exploration companies collectively shedding 407 points from the index. These sectors faced notable challenges, contributing to the overall negative sentiment in the market.
Investors are closely monitoring economic indicators, government policies, and global economic conditions to assess the potential for a market rebound. While uncertainties persist, analysts emphasize the importance of a cautious and informed investment strategy in navigating the current market landscape.
As the PSX grapples with external pressures and internal dynamics, market participants are advised to stay vigilant, keep abreast of relevant news, and consider a diversified approach to mitigate risks during these challenging times. The coming days will likely be crucial in determining the market’s trajectory, with investors eagerly awaiting developments that could influence the overall sentiment and direction of the Pakistan Stock Exchange.
