PSX sees major downturn: KSE-100 plummets by 3.64%

KARACHI: In Tuesday’s trading session, the benchmark KSE-100 at the Pakistan Stock Exchange (PSX) experienced a significant setback, recording a loss of almost 4 per cent.

The day concluded with the benchmark index settling at 62,833.03, marking a decline of 2,371.64 points, or 3.64 per cent. The index reached an intra-day low of 62,360.78 earlier in the session.

Pakistan Stock Exchange – December 19 closing

A widespread sell-off was observed, affecting key sectors such as automobile assemblers, cement, chemicals, commercial banks, oil and gas exploration companies, OMCs, pharmaceuticals, and refineries, all of which registered substantial losses.

This downturn follows Monday’s trend, where investors engaged in profit-taking activities, causing the benchmark KSE-100 Index to lose over 900 points, settling close to the 65,000 level.

The recent correction comes on the heels of a bullish spree that propelled the index beyond 66,000.

Market analysts anticipated this correction, and investor attention is now focused on the upcoming International Monetary Fund (IMF) Executive Board meeting scheduled for January 11, 2024.

Read more: PKR gains 20 paisa vs US dollar

The meeting will review the progress under Pakistan’s current $3 billion stand-by arrangement (SBA).

The current IMF programme is set to conclude in the second week of April 2024, with approximately $1.8 billion yet to be disbursed. The initial tranche of $1.2 billion was released by the Fund in July.

This year has witnessed a remarkable bullish run for the KSE-100 Index, posting gains of nearly 60 per cent.

However, experts highlight that market sentiment has been influenced by a surge in global oil prices, contributing to heightened volatility on the international front.

Investors are closely monitoring these developments as the market navigates through this period of corrections and external factors.