PSX closes lower amid volatility

KARACHI:

Pakistan Stock Exchange (PSX) on Tuesday witnessed a bearish session, with the benchmark KSE-100 index experiencing significant swings, reaching the intra-day high of 869 points before plunging to the intra-day low of 2,480 points.

By the close of trading, the index settled at 114,860.69, marking a decline of 1,308.72 points, or 1.13%. The downturn was attributed to a combination of factors including cautious expectations surrounding the State Bank of Pakistan’s (SBP) monetary policy easing amid multiple risks.

Analysts noted that concerns over a shortfall in the government’s tax collection, weak global crude oil prices and unresolved issues pertaining to the IMF targets contributed to the bearish activity. Despite an initial rally following the SBP’s 200-basis-point (bps) rate cut, the market saw significant volatility, where profit-taking in the latter half exacerbated the decline. According to Ahsan Mehanti of Arif Habib Corp, stocks closed bearish amid cautious SBP policy easing on multiple risks as well as static core inflation near 9.7%, and dismal growth data over the last six months.

He added that consolidation, coupled with concerns over the government’s tax collection shortfall, weak global crude oil prices and unresolved slippages in IMF targets, played the role of catalyst in the bearish activity.

Topline Securities commented in its review that the market witnessed extreme volatility throughout the day as investors digested the monetary policy committee’s (MPC) latest decision. The SBP announced its fifth consecutive rate cut, reducing the policy rate by 200 bps to 13%.

The benchmark index experienced significant swings, reaching the intra-day high of 869 points before plunging to the intra-day low of 2,480 points. By the close of trading, the index settled at 114,861, marking a decline of 1,309 points, it said.

https://tribune.com.pk/story/2516695/psx-closes-lower-amid-volatility