PSX sees sharp decline, and the KSE-100 index falls 1,778 points

Islamabad: Business remained under severe bearish pressure on Friday at the Pakistan Stock Exchange (PSX), where the benchmark KSE-100 index closed at 171,115.82 points after a significant decline of 1,778.46 points. Overall investor sentiment in the market appeared weak, while selling was prevalent in the banking, energy and fertiliser sectors.

The market opened in a positive zone, and the index also touched a high of 172,287.46 points during the trading session; however, selling pressure later reversed the market’s direction. The low of the day was recorded at 170,393.12 points. The opening level was 171,465.06 points, while it ended with a negative trend.

According to the data, the KSE-100 index recorded a decline of 1.03 per cent in today’s trading session, which reflects the cautious attitude of investors in recent days. According to experts, global financial uncertainty, concerns about interest rates, and local economic pressures are affecting the market.

According to data provided by the Pakistan Stock Exchange, the total constituent volume of the KSE-100 index was 431.76 million shares, which indicates adequate activity in the market. Although trading volume remained good, selling was stronger than buying.

The KSE-100 index is still giving a positive return of 36.21% since the beginning of the financial year (FYTD), indicating that long-term investors have received significant returns so far. However, on a calendar year to date (CYTD) basis, the index has gone into the negative zone by 1.69%, highlighting the volatile market situation this year.

Among the stocks that contributed positively to the market, KEL was the top performer, adding 19.26 points to the index. Apart from this, PIOC added 18.05 points, MTL added 16.22 points, JVDC added 14.08 points and HINOON added 13.71 points. Buyer interest in these companies was relatively good.

On the other hand, UBL was the top detractor, pushing the index down by 198.42 points. ENGRO lost 188.52 points, MEBL lost 141.31 points, PPL lost 115.59 points, while MARI lost 99 points. Pressure in the banking and energy sectors dominated the overall market performance.

Experts say that investors will keep a close eye on monetary policy, rupee appreciation, global oil prices and budget-related announcements next week. If economic indicators do not improve, the market may see further volatility.

According to analysts, despite the recent downturn, there are long-term investment opportunities in the market; however, short-term investors need to adopt a cautious strategy.