KSE-100 Index Plunges 908 Points in Surprise Bearish Trading

KSE-100 Index Plunges 908 Points in Surprise Bearish Trading

PkRevenue.com — The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a significant downturn on Tuesday, shedding 908 points in a surprising bearish trading session.

The KSE-100 index closed at 74,667 points, down from the previous day’s closing of 75,575 points.

Analysts at Topline Securities reported that Pakistan equities began the day on a positive note, with the KSE-100 index reaching an intraday high of 75,670 points (+95 points; up 0.12%) in the morning. However, the index could not sustain the 75,000 level due to a selling spree at the day’s peak. Consequently, the KSE-100 index fell into negative territory, closing at 74,666.66 points (-909 points; down 1.20%).

This unexpected bearish trend puzzled investors, especially given the recent consumer inflation report, which showed an inflation rate of 11.80%, significantly lower than the 13.7% forecasted by a Bloomberg survey. Despite this positive inflation figure, market sentiment was dampened by concerns over potential additional austerity measures in the upcoming budget, scheduled for June 12, 2024, and fears of further restrictions in the next International Monetary Fund (IMF) program.

The Technology, Exploration & Production (E&P), and Power sectors were major contributors to the negative performance of the KSE-100 index. Notable declines were observed in SYS, MARI, HUBC, OGDC, and PPL stocks, which collectively lost 341 points. Conversely, stocks such as LUCK, HMB, and HINOON showed some resilience, adding a combined 33 points to the index.

Trading volume was robust, with over 414 million shares exchanged on the KSE-100 index, and the total trading value reaching Rs 18.3 billion. Fauji Cement Company Limited (FCCL) led the volumes chart, with over 36.6 million shares traded.

The surprising downturn and heavy selling pressure underscore the volatility and sensitivity of the market to both domestic policy concerns and international economic conditions. Investors are advised to stay cautious and keep an eye on further developments, particularly the upcoming budget announcements and any new IMF stipulations.