The Pakistan Stock Exchange (PSX) on Tuesday experienced a bearish trend due to political uncertainty and the SBP’s announcement of monetary policy.
According to the PSX website, the KSE-100 index lost 932 points or 1.48% and was closed at the 61,841.74 level.
During the intraday trading, the index plummeted by over 1100 points. However, there were clear visible crests and troughs patterns in trading.
Fluctuations in equity market performance are a significant concern for market analysts, particularly as people prepare to cast their votes on February 8. Additionally, the founding chairman of Pakistan Tehreek-e-Insaf (PTI) Imran Khan was sentenced to 10 years imprisonment in the cipher case.
Even the government’s performance figures are not very satisfying. “Pakistan’s fiscal deficit increased by 43% YoY to Rs 2.4 trillion during 1HFY24,” said Arif Habib Limited.
“Continued foreign selling extracted a toll on the KSE100 yesterday. It may lead to a week open again, especially after the SBP held interest rates unchanged at 22%. However, support should come from value buying in banks that will continue to benefit from high margins and should deliver strong results. We remain positive and view dips as buying opportunities,” said Intermarket Securities Limited.
Therefore, investors with an eye for identifying the right opportunity can maximise benefits or even diversify their investment portfolio during the current dips observable in the stock market after a good healthy period of peaks.
A combination of different factors including political uncertainty, monetary policy announcements, the issue of energy circular debt, and even the financial figures for the first six months of the current fiscal year is impacting stock market trends.
