Heavy selling in major blue-chip stocks pushed the Pakistan Stock Exchange lower on Monday. Energy and banking companies remained among the biggest draggers of the KSE-100 index.
The Pakistan Stock Exchange recorded a sharp decline during trading on Monday, where the KSE-100 index saw a significant decline due to large-scale selling by investors. Large shares of the energy and banking sectors remained under pressure in the market, which resulted in weakening investor confidence.
According to official data, the KSE-100 index closed at 161,805.02 points after a decline of 3,791.05 points. The index recorded a total decline of 2.29 percent while the market remained volatile during the trading day.
The market opened at 164,799.35 points and reached a high of 164,939.09 points in the early session. However, the index later fell to a low of 161,613.51 points due to increasing selling pressure.
According to market analysts, investors are currently adopting a cautious strategy due to concerns about the country’s economic situation, rising inflation, interest rates and budget. They said that many investors sold their shares to take profits after the recent rally.
OGDC was the biggest dragger company in the market, which dragged the index down by 256.64 points. Engro Holdings contributed 241.47 points while Meezan Bank contributed 232.26 points.
Similarly, Pakistan Petroleum Limited contributed 221.62 points and United Bank Limited contributed 209.27 points. According to experts, the selling trend in these companies reflects the weakening interest of investors.
On the other hand, a few companies also showed positive performance. MCB Bank was the biggest pillar with 31.32 points, while Sui Northern Gas Pipelines contributed 4.52 points.
The total volume of shares of the index in the market was recorded at 195.97 million shares. Analysts say that although the market remained negative, investor activity remained, which shows hope for recovery in the future.
According to economists, the direction of the Pakistan Stock Exchange will depend on upcoming fiscal decisions, economic stability and global market conditions. Investors are particularly focused on the IMF negotiations and the upcoming budget.