Mohsin Siddiqui (Chief Reporter)
Bearish sentiments dominated the Pakistan Stock Exchange (PSX) on Tuesday as the benchmark KSE-100 index experienced a significant loss of nearly 1,500 points during trading hours. At 10:45 am, the KSE-100 stood at 60,185.34, marking a 2.46% decline equivalent to 1,519.75 points.
The market downturn was widespread, affecting key sectors such as automobile assemblers, cement, chemical, commercial banks, oil and gas marketing companies, oil and gas exploration companies, refineries, and pharmaceuticals, all trading in the red.
Volatility persisted at the bourse, with the benchmark KSE-100 Index losing almost 1,000 points to settle at 61,705.09 on the previous Friday. Analysts attribute the selling pressure to a correction following the impressive growth the Pakistani market exhibited in recent weeks, pushing the index to record highs exceeding 66,000.
CEO of Topline Securities, Mohammed Sohail, characterized the situation as a “fast (much-needed) correction after a non-stop rally,” citing high leveraged positions and year-end effects on market trends.
A noteworthy development contributing to market dynamics was the Sindh High Court’s suspension of SRO 1588(I)/2023 by the Federal Board of Revenue (FBR). This regulation imposed a 40% additional tax on windfall income of banks.
Despite recent losses, Pakistan equities have demonstrated exceptional performance, delivering substantial gains of 53% and outperforming other major asset classes throughout the calendar year 2023. Local investors found investment avenues in US dollars, Naya Pakistan US$ Certificate under Roshan Digital Account (RDA), gold, and T-bills attractive, according to experts.
Globally, Asian stocks traded cautiously as investors continued to digest data released on Friday, revealing a decline in US prices for the first time in over 3-1/2 years, highlighting the economy’s durability. The MSCI’s broadest index of Asia-Pacific shares outside Japan showed a 0.18% increase, heading for a 1.6% gain for the year. Japan’s Nikkei, while easing by 0.07%, remains the best-performing Asian stock market with a 27% gain for the year.
Thin trading is anticipated on the day after Christmas, with several markets, including those in Australia, New Zealand, and Hong Kong, closed for the Boxing Day holiday.
