The Pakistan Stock Exchange (PSX) experienced its most significant single-day decline on Tuesday as the benchmark KSE-100 index plummeted by over 2,500 points, marking a 4.11% drop from the previous close of 61,705.09 points. Analysts attribute this sharp decline to a year-end correction.
At its lowest, the KSE-100 reached 59,170.97 points during the session. Raza Jafri, Head of Equities at Intermarket Securities, mentioned that the market might be witnessing unwinding of leveraged positions, though trading volumes remained relatively thin.
He expressed optimism that the corrective phase could conclude by the end of the week, potentially leading to a more positive start in January.
Labeling it “Black Tuesday” for the PSX, Khurram Schehzad, CEO of Alpha Beta Core financial advisory firm, emphasized the impact of various factors, including year-end correction and profit-taking.
Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment, echoed these sentiments, highlighting the multiple influences affecting the market.
The prior week had concluded on a subdued note as investors cashed in their profits, and the upcoming week was expected to experience muted trading activity due to the rollover period and extended holidays.
Foreign investor interest was anticipated to be subdued during this period, according to brokerage Arif Habib Ltd.
Despite the recent downturn, some analysts noted that stocks continue to present attractive valuations, potentially attracting investors in the future. The market closed at 61,705 points, reflecting a week-on-week decline of 6.7%.
