LKARACHI – Bears dominated the trade floor at the Pakistan Stock Exchange (PSX) on Tuesday, causing shares to trade in the red and experience a loss of over 500 points.
As per the PSX website, the KSE-100 index registered a decline of 719.12 points, or 1.12%.
The index concluded at 63,737.46, marking a decrease of 531.91 points from the previous close of 64,269.37.
Mohammed Sohail, CEO of Topline Securities, identified Pak Suzuki Motor Company (PSMC) as a significant player trading lower than market expectations. The previously determined minimum buyback price of Rs609 per share, as opposed to Rs406, by the Voluntary Delisting Committee (VDC) at PSX impacted investor confidence.
Sohail noted that mark-to-market losses in PSMC had a ripple effect on other stocks, affecting those who had bought the stock on leverage, requiring them to pay the difference in price from the previous day.
Yousuf M Farooq, Director of Research at Chase Securities, attributed the market’s current situation to uncertainty surrounding the upcoming elections.
On a positive note, he highlighted developments such as the reduction in petrol prices and the sustained strength of the Pakistani rupee, anticipating that these factors would “significantly mitigate inflation” in the months ahead.
Despite a robust market rally in the past six months, Farooq mentioned that the prevailing political situation has prompted a temporary pause, offering the market an opportunity to recalibrate.
https://en.dailypakistan.com.pk/16-Jan-2024/gold-prices-see-decline-in-pakistan
