Profit-taking and gain consolidation continued on the Pakistan Stock Exchange (PSX) on Tuesday, with the benchmark KSE-100 Index falling roughly 500 points during the opening hours of trading.
At 11:20 a.m., the benchmark index had recovered marginally and was trading at 48,053.03, a drop of 333.22 points or 0.69%.
On Monday, the KSE-100 Index fell over 200 points to 48,386.25, as investors assessed an expected new refinery policy and mounting concerns about a postponement in Pakistan’s general elections.
On Tuesday, index-heavy sectors such as vehicle assemblers, cement, chemicals, commercial banks, oil and gas manufacturing businesses, and OMCs saw widespread selling.
According to experts, market participants are profit-taking following a big rise that began with the staff-level deal with the International Monetary Fund (IMF).
“Investors have taken a cautious approach as they seek political stability,” Sana Tawfik, analyst at Arif Habib Limited, told.
Sectorally, the E&P industry remained under pressure.
“The market expected the government to address the issue of circular debt in the energy sector, which was also an International Monetary Fund (IMF) condition, but it appears unlikely now that the government’s tenure is set to end tomorrow,” Tawfik added.
