The Pakistan Stock Exchange once again faced a record single-day drop on Thursday, with the index falling 4.32% and closing at 106,274.97 points. The market reached a high of 111,745.02 at the beginning of the day, but fell to a low of 105,937.37 points during the trading day. Volume reached 531,310,276, reflecting a relatively active trading session. The previous close was recorded at 111,070.29. The PSX had started the week on a bullish note, with the KSE-100 index briefly surpassing 117,000 points during the week, marking an all-time high for the market. Earlier on Wednesday, the PSX also faced a significant decline, with the KSE-100 index falling 3,790 points (3.30%), closing at 111,070.29. This drop marked one of the largest single-day drops in history. The market experienced high volatility, briefly touching 116,236.70 before falling to 110,896.27. Key factors contributing to the decline included concerns over overvaluation of stocks, currency depreciation, global stock market declines, and ongoing discussions between the Pakistani government and the IMF over taxes and structural reforms. Major sectors such as fertilizers, oil and gas and banking contributed the most to the decline. The bearish sentiment was amplified by political instability, the weaker rupee and unresolved IMF targets. Local mutual funds, which had been net buyers for the last 14 sessions, turned net sellers. Despite the decline, some stocks like Pakistan State Oil and Indus Motor showed gains. Trading volume stood at 1.11 billion shares worth Rs 60 billion. Experts noted that the decline was driven by profit-taking activities in key sectors, revenue shortfalls and weak global oil prices. While the market showed a sharp decline, analysts remain optimistic about the long-term outlook, citing the market’s resilience and strong fundamentals.
PSX suffers another record drop in a single day and loses around 4,800 points
