Shares at the Pakistan Stock Exchange (PSX) experienced a significant dip on Tuesday, as the benchmark KSE-100 index plummeted 956 points, marking a 1.98% decrease, to settle at 47,429.82 points. The steepest drop of the day, 1,041 points, was witnessed around 3:29pm.
Market Analysts Weigh In
Siddique Dalal, the helm of Dalal Securities, attributed the decline to various factors. Having witnessed a remarkable ascent of nearly 8,000 points from its 40,000 baseline, a market adjustment was bound to happen. He highlighted the roles of profit-taking endeavours and election-related uncertainties in this decline. He mentioned the stock market’s future: “The direction depends on the next steps – whether an interim setup gets put in place or elections are held in the coming three months.”
Raza Jafri from Intermarket Securities observed a prevalent trend of profit-taking, especially post the notable rally in the Fiscal Year To Date (FYTD). He pinpointed energy stocks as the primary targets of selling, largely because of the unfulfilled promise of resolving circular debt issues. Despite these setbacks, Jafri remained optimistic, stating the strong macroeconomic position of Pakistan and hinting at potential interest rate cuts. He also saw the current market situation as an ideal time for investors to accumulate shares.
CEO of Arif Habib Commodities, Ahsan Mehanti, pointed out political unrest as a significant drag on the stock market. He linked the decline to uncertainties over establishing a caretaker government and currency depreciation concerns. Furthermore, Mehanti drew attention to the unsatisfactory performance metrics from the oil, export, and fertiliser sectors in July 2023 and a global decrease in crude oil prices as factors driving the bearish market sentiment.
 as market analysts share their perspectives. Discover the multifaceted challenges and the market's potential trajectory.){kind=link}