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Monday April 15, 2024

Bloodbath at PSX: Stocks nosedive by over 2,300 points as bourse enters 'correction' phase

Benchmark KSE-100 index underwent selling pressure from the word go, dipping to a low of 62,360.78 points

By Web Desk
December 19, 2023
An investor at the Pakistan Stock Exchange in Karachi in this undated picture. — AFP/File
An investor at the Pakistan Stock Exchange in Karachi in this undated picture. — AFP/File

KARACHI: The Pakistan Stock Exchange (PSX) took a hammering on Tuesday as the benchmark index fell over 2,300 points as the bourse entered the "correction" phase. 

Pakistan Stock Exchange's (PSX) benchmark KSE-100 index underwent selling pressure from the word go, dipping to a low of 62,360.78 points. However, it recovered to close at 62,833.03 after losing 2371.64 points or 3.64%, compared to yesterday's close of 65,204.67 points.

Market talk suggested year-end profit-taking and lack of positive positive macros were the major reasons behind investors’ dump-and-run approach at the bourse.

Pakistan-Kuwait Head of Research, Samiullah Tariq, said that the bears dominated trading at the bourse as the market undergoes year-end correction.

Meanwhile, the Head of Equities at Intermarket Securities Raza Jafri, told Geo.tv that the KSE-100 has shed 5% this week so far as the market's showing "nervousness" ahead of the February 8 elections.

"The market had demonstrated a pre-election rally in the last few months but is now exhibiting nervousness as elections approach," said Jafri, adding that the leveraged positions may also be coming in for margin calls.

Overall trading volumes decreased to 1.51 billion shares compared with Monday’s tally of 1.89 billion. The value of shares traded during the day was Rs29.09 billion.

Shares of 386 companies were traded. Of these, 31 stocks closed higher, 351 fell, and 4 remained unchanged.

K-Electric Ltd was the volume leader trading in 341.06 million shares, losing Rs0.53 to close at Rs5.30. It was followed by WorldCall Telecom with 176.02 million shares, shedding Rs0.20 to close at Rs1.70, and Cnergyico PK with 131.7 million shares, losing Rs0.89 to close at Rs5.01.