Karachi, January 18, 2024 – The Pakistan Stock Exchange (PSX) witnessed a formidable downturn as the benchmark KSE-100 index plummeted by 1,436 points during a persistent four-day losing streak, marking a significant shift in market sentiment on Thursday.
The bears dominated the stock exchange throughout the first four days of the current week, dragging the index from its last week’s closing level of 64,638 points to a closing figure of 63,202 points at the end of Thursday’s trading session. On a day-on-day (DoD) basis, the benchmark index shed 365 points, concluding at 63,202 points compared to the previous day’s closing of 63,567 points.
Analysts at Topline Securities commented on the negative trend in the equity market, attributing the decline to increased selling pressure. The index’s dip of 365 points represented a decrease of 0.57 percent, reflecting the bearish sentiment prevailing in the market.
Throughout the trading session, the KSE-100 index experienced a considerable trading range, spanning 1,051 points. The index fluctuated between a high of 63,579 points and a low of 62,528 points, underlining the volatility and uncertainty in the market.
The recent downward momentum in the stock market has been attributed to escalating geopolitical tensions, particularly following Pakistan’s retaliatory actions against Iran’s attack. Companies such as MTL, OGDC, HUBC, LUCK, and PPL collectively contributed to a negative impact of 187 points on the index, further intensifying the bearish trend.
In terms of trading volumes, a total of 445 million shares, valued at Rs14 billion, changed hands during the trading session. K-Electric (KEL) stood out with exceptional trading volumes, handling over 59 million shares, indicative of heightened investor activity and focus on specific stocks amidst the broader market decline.
As investors grapple with geopolitical uncertainties and the aftermath of recent events, market participants are closely monitoring the situation for potential impacts on stock valuations and overall market stability. The four-day losing streak highlights the challenges faced by the Pakistani stock market, underscoring the need for careful consideration of both domestic and international factors influencing market dynamics in the coming days.
