Karachi: Pakistan Stock Exchange ended trading in the negative zone on Monday, where the KSE-100 index closed 1,174 points lower at 169,497. At the beginning of the day, the market opened at 170,553 and reached a high of 171,306 in the early hours, however, selling pressure later pushed the market downward and the index also reached a low of 169,268.
Today’s performance recorded an overall decline of 0.69%, while over 357 million shares were traded in the market, indicating that investor activity remained intact, but confidence was seen to have declined.Major stocks that weighed on the market included UBL, OGDC, NBP, LUCK and PPL, which played a major role in bringing down the overall index.
Selling was particularly prominent in the energy and banking sectors, reflecting the current economic uncertainty. On the other hand, stocks that showed positive performance included HBL, MEBL, THALL, ILP and EFERT, which supported the market to some extent.
Limited buying was seen in the banking and fertilizer sectors, however, it was not enough to change the overall trend of the market. If viewed in a broader economic context, the 34.92 percent increase in the FYTD index is a positive sign, indicating that investor confidence has not completely disappeared on a long-term basis. However, the 2.62 percent decline in the calendar year to date (CYTD) indicates that the market is facing internal and external challenges.
Experts say that inflation, interest rates, and the effects of the global market are directly affecting Pakistan’s stock market. If economic policies stabilize in the coming days, then the market can be expected to improve, otherwise the volatility may continue.
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