Karachi, September 24, 2024 – The Pakistan Stock Exchange (PSX) experienced a sharp decline on Tuesday, as the benchmark KSE-100 index fell by 367 points, ending the session at 81,484 points. This marked a significant downturn from the previous day’s closing of 81,851 points, highlighting the market’s susceptibility to selling pressure.
Analysts from Topline Securities Limited reported that the KSE-100 index initially opened on a positive note, gaining 159 points (0.19%) early in the session. However, these early gains were quickly erased as profit-taking took hold, driving the index down to an intraday low of 743 points. The index eventually closed with a 366-point loss, representing a 0.45% decline overall.
The downward trend was primarily fueled by significant sell-offs in key stocks, including Hub Power Company (HUBC) and Engro Fertilizers (EFERT), which saw declines of 4.25% and 1.99%, respectively. HUBC, along with other major players such as MCB Bank, Pakistan Petroleum Limited (PPL), and Bank Alfalah Limited (BAFL), contributed to the market’s negative sentiment, collectively dragging the index down by 400 points.
Profit-taking across these large-cap stocks created a ripple effect, unsettling market confidence and prompting a broader sell-off. Analysts pointed out that this kind of market correction is common following periods of sustained gains, as investors seek to lock in profits before potential downturns.
Despite the negative movement in the index, trading volumes remained healthy, indicating continued investor interest. A total of 369 million shares were traded during the session, with a total value of Rs 17 billion. WorldCall Telecom Limited (WTL) led the trading activity, with 39 million shares changing hands, further underscoring the brisk pace of trading in an otherwise bearish market.
While the market’s fall was significant, some analysts expressed cautious optimism, noting that the decline could be a temporary correction. The broader economic outlook, particularly with impending developments like the International Monetary Fund’s (IMF) decision on Pakistan’s loan request, may play a key role in shaping future market trends.
Investors are also keeping a close watch on global economic indicators, including commodity prices and international stock market trends, which continue to influence the sentiment at the PSX. As Pakistan navigates through its economic challenges, volatility in the stock market is likely to persist, with both local and international factors contributing to market performance in the coming days.
