Profit-Taking
The Pakistan Stock Exchange (PSX) encountered persistent bearish sentiment on Friday as shares extended losses, resulting in a substantial dip of nearly 500 points. The KSE-100 index, according to the PSX website, concluded the day at 63,813.06 points, marking a decline of 484.94 points or 0.75% compared to the previous close at 64,298.00.
After a robust three-day rally, the benchmark index faced a setback amidst uncertainties regarding the International Monetary Fund’s (IMF) approval of the government’s proposals for reducing industrial power tariffs and addressing the energy sector’s circular debt. The market’s hesitation stemmed from concerns about the IMF’s stance on the government’s plans.
Earlier in the week, the caretaker prime minister directed the energy ministry to develop a robust strategy to eliminate the persistent issue of circular debt in the energy sector. However, market participants responded cautiously to the evolving situation.
Tahir Abbas, Head of Research at Arif Habib Limited, highlighted the market’s heightened volatility, particularly in anticipation of the upcoming Monetary Policy Committee (MPC) meeting scheduled for January 29. Investors, exercising caution, chose to book profits, contributing to the decline in the KSE-100 index.
A survey conducted by brokerage firm Topline Securities revealed that 68% of key market participants expected no change in the key policy rate, while 32% predicted a reduction. This anticipation added to the overall uncertainty prevailing in the market, influencing investors to adopt a wait-and-watch approach.
The market dynamics, influenced by both domestic economic policies and global financial indicators, continue to shape investor behavior in the Pakistan Stock Exchange. Overall, Bearish Trend Amid Profit-Taking: Pakistan Stock Exchange (PSX) Loses Nearly 500 Points as Shares Trade in the Red on Friday.
