The Pakistan Stock Exchange (PSX) witnessed a sharp downturn today, with the KSE-100 index plunging by 1,840.96 points, a 1.58% drop, bringing the index down to 114,414.16 during intra-day trading. After reaching a high of 116,843.41 points earlier in the session, the market ultimately could not sustain the upward momentum, closing near its daily low.
Despite the overall decline, trading activity remained strong, with 184.7 million shares exchanged, amounting to a turnover value of PKR 14.77 billion. The previous close was recorded at 116,255.12 points, showing a significant drop in market performance throughout the day.
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The decline follows Monday’s turbulent session, driven by ongoing political uncertainty, institutional profit-taking, and concerns over the International Monetary Fund’s (IMF) stringent economic reforms. Analysts highlighted the subdued economic growth of just 0.92% for the July-September 2024 period and the looming challenge of securing a $1 billion IMF loan tranche in March as key factors contributing to investor pessimism.
Major sectors, particularly cement and energy, saw widespread profit-taking, with notable declines in companies like Oil and Gas Development Company (-3.84%) and Pakistan State Oil (-5.12%). While trading volumes were slightly lower than the previous day, foreign investors continued to buy shares worth Rs159.9 million.
Despite the current challenges, analysts point to a $20 billion World Bank loan package for Pakistan, aimed at supporting healthcare, education, and climate resilience, as a potential long-term stabilizer for the economy.
