Karachi, December 26, 2024 – The Pakistan Stock Exchange (PSX) experienced a sharp decline on Thursday, as the benchmark KSE-100 index dropped by 1,991 points, or 1.77%, following intense selling activity ahead of the year-end. The index closed at 110,423 points, down from the previous closing of 112,414 points on December 24, 2024.
Market analysts attributed the significant drop to massive selling across multiple sectors, including cement, commercial banks, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refinery stocks. Index-heavy stocks such as National Refinery Limited (NRL), HUBCO, Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGP), Mari Petroleum (MARI), Oil & Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Engro Corporation (ENGRO), Habib Bank Limited (HBL), Meezan Bank Limited (MEBL), and National Bank of Pakistan (NBP) all saw their prices dip, contributing to the overall decline at the PSX.
The PSX had remained closed on Wednesday due to a public holiday, leaving investors eager to react to the market conditions on Thursday. Prior to the break, the stock market had already witnessed a volatile session on Tuesday, where the index fluctuated significantly before ultimately closing deep in the red. This was largely due to rollover pressure and year-end selling, a common trend as investors look to adjust their portfolios before the year’s end.
Despite the heavy selling pressure, analysts noted that the overall market sentiment remains cautious. While the PSX continues to experience periodic fluctuations, driven by both external factors and local economic challenges, investors are closely monitoring developments that could impact market stability in the coming months. As the year draws to a close, many are hoping for signs of a recovery in key sectors that could help the PSX regain some of its losses.
The recent downturn underscores the volatility often observed at the PSX, particularly during periods of market consolidation and year-end adjustments.