The Pakistan Stock Exchange (PSX) experienced a sharp decline on Wednesday, with the benchmark KSE-100 index plummeting by 3,196 points or 2.78% by midday trading at approximately 3:00 PM. The index fell to 111,665 points, down from the previous day’s closing of 114,861 points.
The trading session at PSX began on a positive note, with the KSE-100 index reaching an intra-day high of 116,236.70. However, across-the-board selling quickly took hold, impacting key sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries. Notable index-heavy stocks, including HUBCO, PRL, NRL, MARI, OGDC, PPL, ENGRO, HBL, MCB, MEBL, and UBL, traded in the red, contributing to the overall decline.
Market experts have attributed this sharp downturn at PSX to profit-taking by investors, who sought to capitalize on earlier gains. The selling pressure followed a period of buying momentum that had been driven by improved economic indicators and a reduction in the policy rate. This shift had initially encouraged liquidity inflows into equities listed on PSX.
Despite the midday slump, there have been positive developments in Pakistan’s economic landscape that could potentially support future recovery at PSX. Notably, Pakistan’s current account recorded a surplus of $729 million in November 2024, compared to a deficit of $148 million in the same month of the previous year. This marks the fourth consecutive month of surplus, as revealed by data released on Tuesday by the State Bank of Pakistan (SBP).
On Tuesday, PSX had already experienced volatility, with the KSE-100 index shedding over 1,300 points to close at 114,860.68. The market’s ongoing fluctuations highlight the cautious sentiment among investors despite encouraging macroeconomic indicators.
The PSX remains a critical barometer of Pakistan’s financial health, and its performance is closely watched by domestic and international investors alike. Analysts suggest that the interplay between global market trends, domestic policy shifts, and corporate earnings will continue to shape PSX’s trajectory in the coming days.