PSX slips further, wipes out week’s gains

Pakistan’s stock market saw a notable decline on Thursday, with the index down 1.07%, currently at 109,879.39 as of 11:30 am. of transactions. Selling volume reached 183,992,732, reflecting a relatively active session. The previous close was at 111,070.29, and the market value was 18,542,601,570. Despite peaking earlier, the market’s negative move left investors concerned as the overall change amounted to a decline of 1,190.90 points. The PSX started the week on a higher note, with the KSE-100 briefly surging above 117,000 for the week, marking an all-time high for the market. Earlier on Wednesday, the Pakistan Stock Exchange (PSX) suffered a major crash, with the KSE-100 index down 3,790 points (3.30%) to close at 111,070.29. This drop marked one of the largest daily declines in history. The market was highly volatile, briefly touching 116,236.70 before falling to 110,896.27. Key factors contributing to the decline included concerns over overvaluation of stocks, currency depreciation, global stock market declines and ongoing discussions between Pakistan’s government and the IMF on tax and structural reforms. Major sectors such as fertilizers, oil and gas and banking were the biggest contributors to the downturn. Bearish sentiment was fueled by political instability, a weaker rupiah and unresolved IMF targets. Local mutual funds, which were net buyers in the last 14 sessions, turned into net sellers. Despite the decline, some stocks such as Pakistan State Oil and Indus Motor posted gains. Trading volume stood at 1.11 billion shares valued at Rs 60 billion. Experts attributed the drop to profiteering in key sectors, revenue shortfalls and weak global oil prices. While the market has seen a sharp decline, analysts remain bullish on the long-term outlook, citing market resilience and strong fundamentals.

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