Black Tuesday PSX sees biggest single-day decline, plummets over 2,500 points
KARACHI: On Tuesday, the Pakistan Stock Exchange (PSX) faced its most significant single-day decline, with the benchmark index dropping by over 2,500 points. Analysts attribute the slump to a year-end correction.
The KSE-100 reached a low of 59,170.97 points, down by 2,534.12 points or 4.11% from the previous close of 61,705.09 points, according to data from the PSX website.
Raza Jafri, Head of Equities at Intermarket Securities, informed Geo.tv that leveraged positions might still be unwinding, but volumes remain on the thinner side. He suggested the corrective phase could conclude by the end of the week, with a more positive start to January.
Khurram Schehzad, CEO of the Alpha Beta Core financial advisory firm, labeled it as “Black Tuesday” for the PSX.
Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment, mentioned various factors affecting the market, including year-end correction and profit-taking.
The News reported that the previous week concluded with investors cashing in their profits, and the upcoming week was anticipated to witness subdued trading activity due to the rollover period and extended holidays.
Arif Habib Ltd, in a note, stated, “We expect subdued interest from foreign investors in the market owing to long holidays. Additionally, the upcoming week marks a rollover period that investors will closely monitor.”
“Moreover, we observe that stocks persistently offer attractive valuations, possibly enticing investors.”
The market closed at 61,705 points, reflecting a decline of 4,425 points or 6.7 percent week on week.
