The Pakistan Stock Exchange (PSX) witnessed a significant downturn on Monday, with the benchmark KSE-100 index losing over 700 points in early trading. By 11:23 am, the KSE-100 had dropped by 630.11 points, a 0.99 percent decrease, settling at 63,182.95 from the previous close of 63,813.06, as per the PSX website.
Market Analysis and Outlook
Experts attribute this decline to various factors. Mohammed Sohail, CEO of Topline Securities, linked the downturn to last week’s foreign selling and the lack of progress on the circular debt proposal. Raza Jafri, head of equities at Intermarket Securities, pointed to uncertainties over circular debt settlement plans and the anticipation of unchanged interest rates in the upcoming Monetary Policy Committee (MPC) meeting. He observed that these factors deterred new buyers, evidenced by limited trading activity.
Faran Rizvi, head of equity sales at JS Global, identified political instability as a primary concern causing market hesitance, which has resulted in a sideways trend. He advised investors to be cautious, suggesting the market might consolidate at current levels.
