Shares at PSX fall by 956 points

KARACHI: The Pakistan Stock Exchange (PSX) experienced a significant decline in share values on Tuesday, with the benchmark KSE-100 index plummeting by 956 points, equivalent to 1.98 per cent, ultimately settling at 47,429.82 points at the close of the trading session.

The index touched an intraday low, experiencing a dip of 1,041 points around 3:29 pm.

Siddique Dalal, the CEO of Dalal Securities, shared his perspective on the situation, highlighting that the market had witnessed an impressive surge of approximately 8,000 points from the 40,000 mark.

According to Dalal, the ramifications of such a rapid movement were anticipated, Dawn reported.

Further exacerbating the situation was the profit-taking activity undertaken by certain firms, compounded by the prevalent uncertainty surrounding the upcoming elections.

Dalal pointed out that reports suggesting potential delays in the election process had added to the confusion.

Dalal predicted that the market might require a day or two to regain its bullish momentum. He emphasized that the market’s trajectory hinged on whether an interim setup would be established or if elections would take place within the next three months.

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This crucial factor, he noted, would significantly influence the outcome.

Raza Jafri, Head of Research at Intermarket Securities, commented on the current phase of profit-taking within the KSE100 index, which followed a notable rally in the Fiscal Year To Date (FYTD).

Jafri pointed out that the selling pressure was particularly targeting energy stocks, which had surged due to expectations of resolving circular debt issues. However, this resolution had not materialized as of yet.

Jafri further elaborated that the prevailing consensus was that Pakistan’s macroeconomic landscape remained robust throughout this fiscal year.

As expectations leaned toward impending reductions in interest rates, he highlighted the potential for re-evaluation of valuations.

He also noted that the ongoing market correction was creating an opportunity for strategic accumulation of holdings during market downturns.

Ahsan Mehanti, CEO of Arif Habib Commodities, highlighted that the stock market concluded the session with a decline, attributing this primarily to investor apprehensions arising from political turbulence.

This unease was compounded by uncertainties related to the appointment of a caretaker administration and the depreciation of the national currency.

Mehanti further pointed out that discouraging figures concerning oil sales, exports, and fertilizer production in July 2023, combined with a downturn in global crude oil prices, collectively contributed to the market’s bearish performance.