ISLAMABAD: The benchmark KSE-100 index at the Pakistan Stock Exchange witnessed a significant drop of 956 points, equivalent to 1.98 percent, resulting in a closing value of 47,429.82 points.
Around 3:29 p.m., the index hit an Intraday low, experiencing a decline of 1,041 points.
Siddique Dalal, CEO of Dalal Securities, offered his perspective, noting that the market had recently seen a substantial surge of nearly 8,000 points from the 40,000 mark, and the consequences of this surge were inevitable.
Furthermore, certain firms engaged in profit-taking activities, amplifying the impact of the prevailing uncertainty surrounding the upcoming elections. Dalal highlighted that reports suggesting potential delays in the election process had contributed to the general confusion.
He added that the market’s positive momentum might resume within a day or two, with the outcome hinging on the establishment of an interim setup or the conduct of elections within the next three months. According to the analyst, much of the situation revolves around this crucial factor.
Raza Jafri, Head of Research at Intermarket Securities, observed that the KSE100 index was currently undergoing a phase of profit-taking following a notable rally in the Fiscal Year To Date (FYTD).
He explained the situation: “The selling pressure is primarily affecting energy stocks, which had surged rapidly due to expectations of resolving circular debt issues. However, this resolution has not materialized yet.”
Jafri elaborated that the prevailing consensus was that Pakistan’s macroeconomic landscape remained robust throughout the fiscal year. As expectations leaned towards forthcoming interest rate reductions, he emphasized the significant potential for re-evaluating valuations.
He further highlighted that the ongoing market correction was creating an opportunity for the strategic accumulation of holdings during market declines.
CEO Ahsan Mehanti comments on the Stock market
CEO of Arif Habib Commodities, Ahsan Mehanti, commented that the stock market concluded the session with a decline, primarily attributed to investor apprehensions stemming from political turbulence. This unease was further compounded by uncertainty regarding the appointment of a caretaker administrator and the depreciation of the national currency.
Mehanti also pointed out that discouraging figures related to oil sales, exports, and fertilizer production in July 2023, combined with a downturn in global crude oil prices, collectively contributed to the market’s bearish performance.
