Karachi – The Pakistan Stock Exchange (PSX) witnessed another negative trend on Wednesday, with both the KSE-100 and KMI-30 indices closing lower. The overall market sentiment indicates that investors are still uncertain about economic policies, financial stability, and external pressures.
The KSE-100 index closed at 169,427.44 points, down 903.12 points, or 0.53 percent. During the day, the index touched a high of 170,729 and a low of 169,346, but the pressure prevailed in the closing session.
Similarly, the KMI-30 index also closed at 242,092.83, down 1,110.02 points or 0.46 percent. This market trend has further highlighted that large investors and institutional investors are currently adopting a cautious strategy.
According to experts, the major reasons for the recent decline in the market include global financial pressures, uncertain expectations regarding interest rates and a slowdown in foreign investment flows. Moreover, the trend of profit-taking in the energy and banking sectors was also prominent.
According to the “Pullers and Draggers” of KSE-100, stocks like Maple Leaf (MEBL), ISL, and POL (POL) supported the index to a limited extent; however, large stocks like ENGROH, OGDC, UBL, and MCB added negative pressure.
According to government financial institutions, this volatility in the market is temporary in nature, and in the medium term, the effects of economic reforms and the IMF programme may help stabilise the capital market.
Analysts say that until there is clear continuity in macroeconomic policy and a conducive environment for investment, limited volatility in the market may continue.