Pakistan Stock Exchange’s Islamic Index KMI-30 witnessed a significant decline on Friday, with the index falling 1,524.88 points to close at 243,917.86 points. Although the decline appears to be worrisome, market experts are calling it part of a broader correction.
The market entered the positive zone at the beginning of the day, and the index reached a high of 246,889.30 points. However, later, selling pressure in major sectors, especially energy, cement and banking stocks, changed the situation, and the index fell to a low of 243,644.06 points.
Market data shows that OGDC and PPL proved to be the biggest draggers. Both the companies had a combined negative impact of more than 548 points. Similarly, MEBL, MARI and LUCK also played a significant role in the market decline.
According to analysts, several factors are behind the recent decline. On the one hand, investors are taking profits after the unprecedented boom of the past months, while on the other hand, the uncertainty in global energy markets and the wait for local economic decisions have also created a cautious attitude.
Interestingly, despite the daily decline, the KMI-30 index has given a positive return of 31.93 percent since the beginning of the financial year. This means that the long-term direction of the market is still considered positive.
Among the stocks showing positive performance, GAL was at the top, gaining 34.97 points. SAZEW, PAEL and PSO also tried to support the market. The performance of these companies shows that investors are now choosing certain sectors and companies more carefully.
Experts say that the turnover of 73.26 million shares in the market is proof that investors are active and liquidity is intact. This is why most analysts are calling the current situation a “healthy correction” rather than a crisis.
Interest rates, budget policy, inflation data and corporate earnings will play a major role in determining the market trend in the coming days. If economic indicators remain positive, the KMI-30 could resume its bullish trajectory.
