Karachi, Pakistan – The share market experienced a sharp decline on Friday, shedding 340 points due to selling pressure across various sectors.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 40,732 points, down from 41,071 points, marking a significant drop.
Analysts at Arif Habib Limited noted that after registering gains of approximately 2,400 points, driven by the US elections and an increase in commodity prices, the share market underwent a phase of consolidation. This led to a downward adjustment of 340 points, as investors engaged in profit-taking.
The decline was widespread, with notable selling pressure in banking and exploration & production (E&P) stocks. A 3% dip in international crude oil prices negatively impacted E&P stocks, further weakening market sentiment. The share market also reacted to uncertainties in the local political landscape, causing concerns among investors about the continuity of the incumbent government.
Among the most traded stocks, UNITY led with 49 million shares, followed by POWER with 43.6 million shares and TRG with 31.3 million shares. Sector-wise, the largest contributors to the market’s downturn were Banks (-121 points), E&P (-53 points), Fertilizer (-47 points), Cement (-35 points), and Oil & Gas Marketing Companies (-27 points).
Trading volumes slightly decreased by 2%, with a total of 350.4 million shares changing hands compared to the previous 356.6 million. The average traded value also declined by 2% to US$72.4 million from US$73.6 million. The share market faced considerable resistance as investors remained cautious about short-term fluctuations.
Stocks making a positive contribution to the index included TRG (+39 points), MEBL (+18 points), COLG (+11 points), UNITY (+7 points), and SYS (+6 points). Conversely, stocks exerting downward pressure on the index included HBL (-49 points), MCB (-32 points), ENGRO (-27 points), UBL (-26 points), and PPL (-20 points).
The share market is expected to remain volatile in the near term, with investors closely monitoring global commodity trends, political developments, and macroeconomic indicators. Analysts suggest that stability in crude oil prices and political clarity could provide much-needed support to market sentiment in the coming weeks.