KARACHI: The Pakistan Stock Exchange (PSX) recorded a massive decline on Monday as 1,405.45 points were knocked off the KSE-100 Index, closing at 114,063.90 — a 1.22% fall from the previous session.
Starting positively with an intra-day high reaching 116,658.95, the investor confidence evaporated all too quickly as geopolitical tensions kept escalating besides profit-taking done by traders.
Topline Securities described it as a "classic tussle between the bulls and the bears". The index climbed almost 1,200 points in early trading, only to reverse course as shares were being sold aggressively.
The most salient cause of this reversal was increasing political and military strain between India and Pakistan after a deadly attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK), leading both countries to sword-rattle and retaliate with dramatic action.
Inevitably, research reports released by brokers showed that the herd sentiment was being dented largely by the investor sentiments around these events.
In contrast, major stocks such as ENGROH-UBL, MARI, EFERT, and PSO have had an aggregate contribution of 907 bent points on the index. However, a picked portion of gains was realized through stocks such as SYS, LUCK, MEBL, and HBL, which contributed 489 additional points.
The futures rollover week added pressure on the market, as did the uncertainty in global markets with respect to the stalled US-China trade talks. Plus, while the rupee appreciated merely to 281.07 to the dollar, trading volumes and share values fell from last session's benchmarks.
449 companies traded, 313 saw declines in their share values, while 93 made gains, leaving 43 unchanged. Investors were generally wary within the trading session, with the backdrop of domestic unrest heavily compounded with global uncertainties.
[Source Credit: Business Recorder]
