Bears rule stocks as KSE-100 plunges over 1,700 points

KARACHI: The Pakistan Stock Exchange (PSX) started the day on a negative note as the benchmark index witnessed a sharp decline of over 1,700 points on Tuesday.

The KSE-100 index dipped to a low of 59,907.70 points during the intraday trading, down by 1,797.39 points or 2.91%, according to the PSX website.

Head of Equities at Intermarket Securities Raza Jafri told that leveraged positions may possibly still be unwinding, however, volumes are on the thinner side.

“It is possible the corrective phase runs its course out this week, and that January opens on a more positive note,” he added.

Head of Research at Pakistan-Kuwait Investment, Samiullah Tariq, said that there were several factors affecting the market including year-end correction and profit taking.

Stocks ended the previous week on a low note as investors cashed in their profits while the next week was expected to see subdued trading activity due to the rollover period and the long holidays, The News reported citing dealers.

“We expect subdued interest from foreign investors in the market owing to long holidays,” brokerage Arif Habib Ltd said in a note. “Additionally, the upcoming week marks a rollover period that investors will closely monitor.”

“Moreover, we observe that stocks persistently offer attractive valuations, possibly enticing investors.”

The market closed at 61,705 points, declining by 4,425 points or 6.7 percent week on week.