Market correction continues to cause stock market instability

KARACHI: Pakistan Stock Exchange had a changeable outgoing week, with profit taking and correction marking the better part of trading activity through the five days.

On Tuesday, after the long weekend, the index opened with a bearish sentiment, once again, and plunged down by over 1,200 points by within two hours of trading. Wednesday, opened with the same fluctuating sentiment, but managed to recover some of the day’s losses by noon.

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The index opened at 59,170.97 points, but soon after opening the market fell by more than 400 points to hover at 58,758.48 by 9:30 A.M. However, the benchmark KSE-100 index began recovering and by noon, the market had gained 750 points on opening stage to trade around 59,921.62 points.

Energy and banking sector companies were leading the recovery of the market, which came despite the political uncertainty as well as market correction due to profit-taking.

Analysts anticipate the decline witnessed in the market in the past few weeks. However, they also expect the market correction to finish its course within the current week, allowing the KSE-100 index to open on a positive note in calendar year 2024.