The Pakistan Stock Exchange (PSX) continued its decline on Thursday, with the benchmark KSE-100 index losing 4,795.32 points, or 4.3%, to fall to 106,274.97 at the closing bell.
The decline came on the heels of Wednesday’s historic loss of 3,790 points, as selling pressure gripped key sectors such as chemicals, commercial banks, power generation and refineries.
Shares of prominent heavyweights, including MARI, HUBCO, NRL, HBL, NBP, MCB and UBL, were trading in the red.
The market witnessed a sharp decline at the beginning of the trading session as the main index fell below 108,500 points, after closing at more than 111,000 points the previous day. Despite the quick recovery attempt, selling pressure affected investors once again.
Intermarket Securities Limited said in its note that although the negative market trend may continue, it presents buying opportunities for investors who have missed the rally since late November. The brokerage highlighted that key market drivers – liquidity, low interest rates, and low political noise – remain supportive.
This contraction coincided with the government’s introduction of the Taxation Laws (Amendment) Bill, 2024 in the National Assembly. The proposed legislation aims to tighten restrictions on non-applicants, preventing them from purchasing vehicles larger than 800 cubic centimeters, acquiring high-value real estate, and making large investments in stocks.
The downward trend comes after the announcement of an interest rate cut by the central bank on Monday, which was expected to be the reason behind the increase in buying levels before Monday.