From Zeeshan Mirza
Karachi: Shares at the Pakistan Stock Exchange (PSX) fell sharply on Tuesday, with the benchmark KSE-100 index dropping 956 points, or 1.98 per cent, to close at 47,429.82 points.
Its intraday low was seen at a decline of 1,041 points around 3:29pm.
Siddique Dalal, CEO of Dalal Securities, expressed his perspective that the market had experienced a notable surge of almost 8,000 points from the 40,000-mark, and the repercussions of this movement were inevitable.
Additionally, certain firms engaged in profit-taking activities, further com-pounded by the prevailing uncertainty regarding the upcoming elections. Dalal pointed out that reports indicating potential delays in the election process had contributed to this confusion. He added that it might take a day or two for the market to continue its bull run. “The outcome hinges on whether an interim setup will be established or if elec-tions will be conducted within the next three months. Much of the situation depends on this pivotal factor,” the analyst remarked.
Raza Jafri, the Head of Research at Intermarket Securities, commented that the KSE100 index was experiencing a phase of profit-taking subsequent to a pronounced rally in the Fiscal Year To Date (FYTD).
He explained, “The selling pressure is primarily targeting energy stocks, which had rapidly ascended due to anticipated resolution of circular debt issues. However, this resolution hasn’t materialised as of yet.”
Jafri went on to elaborate that the prevailing notion was that Pakistan’s mac-roeconomic landscape remained robust throughout this fiscal year. As expecta-tions leaned toward forthcoming reductions in interest rates, he emphasised the substantial potential for a re-evaluation of valuations.
He further noted that the ongoing market correction was furnishing an oppor-tunity to strategically accumulate holdings during market dips.
Arif Habib Commodities CEO Ahsan Mehanti remarked that the stock market concluded the session with a decline, primarily due to investor apprehensions stemming from political turbulence. “This unease was coupled with uncertainty surrounding the appointment of a caretaker administration and the deprecia-tion of the national currency.”
Mehanti further noted that the discouraging figures related to oil sales, ex-ports, and fertiliser production in July 2023, along with a downturn in global crude oil prices, collectively contributed to the market’s bearish performance.
