PTBP Web Desk
The Pakistan Stock Exchange (PSX) experienced a volatile trading session on Monday, as the benchmark KSE-100 Index plummeted by 1,332 points. The market, which initially started on a positive note, faced significant selling pressure, impacting major sectors and pulling the index deep into the red.
Trading began on a high as the KSE-100 Index touched an intra-day peak of 118,765 points. However, the positive momentum was short-lived as selling pressure emerged, dragging the index to an intra-day low of 115,941 points. At the close of the session, the index settled at 116,255.13 points, reflecting a decrease of 1,331.86 points or 1.13%.
Selling pressure was evident across major sectors, including:
- Commercial Banks
- Oil and Gas Exploration Companies
- Oil Marketing Companies (OMCs)
- Power Generation Firms
Index-heavy stocks such as HUBCO, PSO, SHELL, SSGC, MARI, OGDC, PPL, HBL, MCB, MEBL, and NBP witnessed significant losses, further dragging the market down.
Intermarket Securities highlighted an opportunity amid the market dip, stating, “We think it is a good time to accumulate cement stocks on dips. The sector could outperform defensive sectors over the next six months if the current pricing discipline sustains.”
The downturn followed a bullish performance in the preceding week, which saw the PSX reach record-high levels. The KSE-100 Index surged by 6,235.80 points on a week-on-week basis, closing at an all-time high of 117,586.98 points on January 3, 2025.
This strong performance was fueled by robust investor interest and institutional support, underscoring the market’s potential for recovery despite the recent slump.
On the global front, Asian markets started the week on an uneven note, influenced by a slew of economic data and political developments. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6% after losing 1% in the previous week.
- Economic Data in Focus
Investors are closely watching economic indicators in the United States, including the December payrolls report, ADP hiring data, job openings, and weekly jobless claims. These reports could influence expectations around the Federal Reserve’s monetary policy, with markets already scaling back expectations to 40 basis points in rate cuts for 2025. - Federal Reserve Insights
Minutes from the Fed’s last meeting, scheduled for release on Wednesday, are expected to provide further clarity on interest rate projections. Comments from key policymakers, including Fed Governor Christopher Waller, will also be pivotal in shaping market sentiment. - Political Developments
Political uncertainty remains a global concern, with reports indicating that Canadian Prime Minister Justin Trudeau may announce his resignation soon. Such developments could influence investor confidence across markets.
While the PSX faced significant losses during Monday’s session, analysts remain optimistic about potential recovery opportunities in select sectors, particularly cement. The previous week’s strong performance highlights underlying investor confidence, suggesting the market’s ability to rebound from periodic downturns.
On the global stage, upcoming economic data and Federal Reserve announcements will play a critical role in shaping market trends. Local investors are advised to stay informed about these developments, as they could impact international and domestic market dynamics.
