PTBP Web Desk
After a prolonged buying spree, the Pakistan Stock Exchange (PSX) faced intense selling pressure on Friday, with the benchmark KSE-100 Index experiencing a sharp decline. During the early hours of trading, the index plummeted by over 1,500 points, reflecting widespread investor concerns.
By 10:30 AM, the KSE-100 Index stood at 115,611.33, down 1,508.32 points or 1.29%. This drop marked a significant shift from the recent bullish trend, sparking apprehension among market participants.
The selling pressure impacted several key sectors, including:
- Automobile Assemblers
- Cement
- Chemical
- Commercial Banks
- Oil and Gas Exploration Companies
- Oil Marketing Companies (OMCs)
- Power Generation
Heavyweight stocks such as HUBCO, PSO, SHELL, MARI, OGDC, POL, MCB, MEBL, NBP, and UBL were all in the red, further amplifying the negative sentiment across the trading floor.
Intermarket Securities, in its latest note, described equities, particularly cyclicals, as attractive opportunities for investors. However, it added that the market’s recent shift from stabilization to growth may require more time to fully materialize.
On Thursday, the PSX experienced a volatile session with the KSE-100 Index swinging between gains and losses before closing slightly higher. The index ended the day at 117,119.65 points, marking a modest increase of 111.57 points.
The selling pressure at the PSX coincided with mixed trends in global markets.
Asian markets saw a modest rise on Friday as investors attempted to shake off a subdued start to the new year. The MSCI Asia-Pacific Index (excluding Japan) climbed 0.33%, though it remained on track for a nearly 1% weekly loss.
China’s CSI 300 Index showed slight improvement, rising 0.16% in early trading. However, concerns lingered following Thursday’s steep decline, reflecting broader fears about China’s economic trajectory and trade tensions. Meanwhile, Hong Kong’s Hang Seng Index registered a marginal increase of 0.19%.
On Wall Street, U.S. stocks closed lower on Thursday after initially posting gains. Tesla’s shares fell sharply by 6.1% following news of its first annual drop in deliveries. The overall market mood remained cautious, dampened by concerns about high interest rates and uncertain economic policies under the incoming Trump administration.
The PSX’s performance on Friday underscores the complex interplay of local and global factors influencing investor sentiment. Domestically, sectors that had previously benefited from government stabilization policies are now adjusting to the challenges of transitioning towards growth. Internationally, fluctuations in global markets, particularly in Asia and the U.S., are adding to the uncertainty.
While the current market conditions may seem daunting, analysts remain cautiously optimistic. The note from Intermarket Securities highlighted the potential of cyclical stocks to deliver long-term gains as the country progresses towards economic recovery.
