Karachi, January 6, 2025 – The Pakistan Stock Exchange (PSX) witnessed highly volatile intraday trading on Monday, as the benchmark KSE-100 index experienced a dramatic swing, shedding over 1,400 points by 3:10 PM.
The market started on a positive note, with the benchmark index reaching an intra-day high of 118,765 points. However, selling pressure quickly emerged, causing the index to dip to an intra-day low of 115,941 points, illustrating the turbulent nature of the trading session.
By 3:10 PM, the KSE-100 index stood at 116,178 points amid volatile trading, reflecting a decrease of 1,409 points, or approximately 1.2%. This sharp decline in the index was primarily attributed to the widespread selling in key sectors. Commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), and power generation stocks all faced significant downward pressure. Notable index-heavy stocks such as HUBCO, PSO, SHELL, SSGC, MARI, OGDC, PPL, HBL, MCB, MEBL, and NBP were all seen trading in the red, contributing to the broader market slump due to volatile trading.
Despite this challenging day, some market analysts see potential for recovery. “We think it is a good time to accumulate cement stocks on dips,” stated Intermarket Securities. “The cement sector could outperform defensive sectors over the next six months if the pricing discipline remains intact.”
Last week, the PSX had experienced a bullish trend, with the benchmark index hitting new all-time highs. The KSE-100 surged by 6,235.80 points, closing at a record level of 117,586.98 points. This surge was driven by strong investor interest and institutional support, signaling positive sentiment in the market.
Internationally, stock markets in Asia had a mixed start on Monday, as traders awaited a week filled with economic reports. These reports are expected to highlight the relative outperformance of the United States economy, further strengthening the dollar’s bullish run.
The volatile trading at PSX underscores the uncertainty investors are facing as they navigate a fluctuating market landscape, with potential for both gains and losses. Traders will be closely monitoring the market in the coming days for signs of stabilization or further volatility.