The Pakistan Stock Exchange (PSX) continued its downward spiral on Thursday, with the benchmark KSE-100 Index losing 4364.67 points, or 4%, to fall to 106,705.62 by 2:35 pm.
The slump followed Wednesday’s historic single-day loss of 3,790 points, as selling pressure gripped key sectors such as chemicals, commercial banks, power generation, and refineries.
Notable index heavyweights, including MARI, HUBCO, NRL, HBL, NBP, MCB, and UBL, all traded in the red.
The market saw a sharp decline right at the onset of the trading session where the benchmark index went below 108,500 points. Despite a quick recovery attempt, the selling pressure caught up with the investors again.
Intermarket Securities Limited in its note, stated that while the market’s negative trend might persist, it presents buying opportunities for investors who missed the rally since late November. The brokerage highlighted that key market drivers—liquidity, falling interest rates, and reduced political noise—remain supportive.
The downturn coincided with the government’s introduction of the Tax Laws (Amendment) Bill, 2024, in the National Assembly. The proposed legislation aims to tighten restrictions on non-filers, prohibiting them from purchasing vehicles over 800cc, acquiring high-value property, and making substantial stock investments.
The bearish trend comes after a rate cut announcement by the State Bank on Monday the anticipation of which was the reason behind high levels of buying before Monday.
