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Pakistan Stock Exchange

Pakistan Stock Exchange (PSX)

Pakistan Stock Exchange (PSX)

The Pakistan Stock Exchange (PSX) experienced a notable downturn, as predicted by most analysts, with the benchmark KSE-100 index dropping close to 4% in Tuesday’s trading session.

This downward trend, following a period of bullish activity that had pushed the index above 66,000, was largely attributed to across-the-board selling in major sectors such as automobiles, cement, chemicals, banks, and oil and gas.

Investors engaged in profit-taking, a continuation from Monday when the KSE-100 lost over 900 points. This correction aligns with analysts’ expectations, especially in the context of the upcoming International Monetary Fund (IMF) review on January 11, 2024, for Pakistan’s $3 billion stand-by arrangement.

The PSX’s bearish turn also coincided with rising global oil prices, aggravated by Houthi attacks on ships in the Red Sea, causing concerns for Pakistan, a significant oil importer. Key sectors like banking, oil and gas exploration, and fertilizer were major contributors to the index’s decline.

Trading volumes dropped to 1.51 billion shares, but the value of shares traded increased slightly. K-Electric Limited led in volume with 341.06 million shares, followed by WorldCall Telecom and Cnergyico PK. Out of 386 traded companies, only 31 saw an increase, while 351 declined.