Karachi, January 6, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday, with the benchmark KSE-100 index plunging by 1,332 points or 1.13%. The index closed at 116,255 points, a significant drop from last Friday’s closing of 117,587 points, reflecting the dominance of bearish trading.
Market analysts at Topline Securities attributed the decline to profit-taking as investors sought to capitalize on recent gains. The Pakistan bourse showed pronounced volatility throughout the session, recording an intraday high of 1,148 points and a steep intraday low of 1,645 points before settling at a loss of 1,331 points (1.13%).
A major factor behind the bearish trend was escalating concerns within Pakistan’s gas sector. Reports of a significant increase in circular debt rattled investor confidence, prompting widespread sell-offs. This development amplified the already cautious sentiment prevailing in the market.
The cement sector further contributed to the downturn, continuing its downward trajectory due to ongoing disagreements among industry players. Divergent strategies, including disputes over market share and adjustments in geographic sales to enhance retention prices, added to the uncertainty, driving investors to book profits.
Amid the market’s overall decline, some companies managed to buck the trend. Key contributors to the index’s gains included ENGROH, HMB, AICL, MCB, and MUREB, collectively adding 395 points. However, these gains were outweighed by significant losses in prominent stocks such as OGDC, PSO, FFC, EFERT, and SNGP, which collectively dragged the index down by 698 points.
Despite the decline, trading activity remained robust, signaling continued investor interest in Pakistan’s stock market. A total volume of 814 million shares was traded during the session, with a turnover amounting to Rs 38.2 billion. CNERGY emerged as the volume leader, with 83 million shares changing hands, highlighting active participation in the market despite the bearish trend.
The current developments reflect the complex dynamics of Pakistan’s economic landscape, with sectors like gas and cement experiencing turbulence. As the market adjusts to these challenges, investors are advised to closely monitor sector-specific developments and align their strategies accordingly. With significant trading volumes and active participation, the Pakistan Stock Exchange remains a critical barometer of the country’s economic sentiment and financial activity.