A correction that most analysts say was expected continued to take its toll on share prices at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 lost nearly 4% during trading on Tuesday.
At close, the benchmark index settled at 62,833.03, a decrease of 2,371.64 points or 3.64%. Earlier, the index even hit an intra-day low of 62,360.78.
Across-the-board selling was witnessed with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs, pharmaceuticals and refinery trading deep in the red.
On Monday, investors had also resorted to profit-taking as well with the benchmark KSE-100 Index losing over 900 points to settle near the 65,000 level.
The ongoing profit-taking trend comes after the bourse had enjoyed a bullish spree that pushed the index beyond 66,000.
Experts say the correction was expected and now investors are keenly awaiting the International Monetary Fund (IMF) Executive Board meeting, which is scheduled to consider the first review under Pakistan’s current $3 billion stand-by arrangement (SBA), on January 11, 2024.
The current IMF programme of $3 billion is scheduled to end in the second week of April 2024, with around $1.8 billion remaining un-disbursed. The Fund released $1.2 billion as the first tranche in July.
The KSE-100 Index has seen a massive bullish run this year, gaining nearly 60%.
Meanwhile, experts noted that market sentiment was also irked by an increase in global oil prices, amid rising volatility on the international front.
Oil prices rose on Tuesday as attacks by Yemen’s Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels.
Oil major BP temporarily paused all transits through the Red Sea and oil tanker group Frontline said on Monday its vessels would avoid passage through the waterway, signs the crisis was broadening to include energy shipments.
The increase in oil prices does not bode well for Pakistan, a net importer of crude, which already faces high inflation and surging energy prices.
Sectors painting the benchmark index in red included banking (-443.16 points), oil and gas exploration (-301.54 points) and fertilizer (-228.79 points).
Volume on the all-share index decreased to 1.51 billion from 1.89 billion a session before.
However, the value of shares inched up to Rs29.1 billion from Rs24.6 billion in the previous session.
K-Electric Limited was the volume leader with 341.06 million shares, WorldCall Telecom followed with 176.03 million, and Cnergyico PK at 131.72 million shares.
Shares of 386 companies were traded on Tuesday, of which 31 registered an increase, 351 recorded a fall, while 4 remained unchanged.