The Pakistan Stock Exchange (PSX) ended in the negative zone on Tuesday, with the KMI-30 index closing at 232,771 points after a significant decline of 1,483 points. The market opened at 234,740 points, while the index reached a high of 236,680 points during the day but later saw a low of 228,631 points due to selling pressure. Thus, the index recorded a decrease of 0.63 per cent after volatility throughout the day.
According to market analysts, significant selling was seen in large shares of the energy and banking sectors, which played a major role in pushing the index down. In particular, MARI, FFC, HUBC, MEBL and MLCF had a negative impact of hundreds of points in total. Experts say that investors are adopting a cautious attitude due to fluctuations in global oil prices and local economic uncertainty.
On the other hand, buying was also seen in some selected companies, including LUCK, EFERT, ATRL, PAEL and OGDC. These companies contributed more than 900 points in total, but this increase was insufficient to overcome the overall negative pressure. The total trading volume of the index components was recorded at 122.66 million shares, indicating moderate activity.
According to experts, the index has maintained a 25.90 per cent increase since the beginning of the financial year, which is considered an encouraging sign for long-term investors; however, the 6.34 per cent decline since the beginning of the calendar year shows the recent pressure in the market. Analysts say that economic data, interest rate expectations and corporate results will determine the direction of the market in the next few sessions.
Investment experts suggest that despite short-term volatility, investing in fundamentally strong companies in stages can be a better strategy in the long term; however, investors should be cautious and assess the risks.