Pakistan Stock Exchange loses momentum, 100-index sheds 820 points

[ASKardar]

https://www.facebook.com/

KARACHI: After continued bullish trend in the Pakistan Stock Exchange (PSX), the bears took over the market on Monday as the KSE 100-Index plunged 820 points during the start of the first day of the business week.

The bench mark 100-index lost the level of 42,000 and currently trading at 41,502 points.

On Thursday, Pakistan Stock Exchange’s KSE 100-index had crossed 42,480 points with a positive change of 1,080.76 points.

A total of 412,354,330 shares were traded compared to the trade 330,740,610 shares during Wednesday, whereas the value of shares traded during the day stood at Rs 17.057 billion.

Total 380 companies’ transacted shares in the Stock Market today, out of which 297 had recorded gain and 72 sustained losses whereas the share price of 11 companies remained unchanged.

Pakistan’s strong economic indicators were endorsed after Bloomberg, the international economic journal in its report on November 20, termed Pakistan stocks ‘world-beating’.

According to Bloomberg’s report, foreign investors have bought $64 million of the nation’s stocks this year, set for the first annual inflow since 2014.

SOURCE: https://arynews.tv/en/pakistan-stock-exchange-100-index-820-points

 

[Haris Ali2140]

Hoor Karao Jangaan.

 

[Riz]

Maybe due to regional situation

 

[Jungibaaz]

Maybe due to regional situation

Most likely case here, but also macroeconomic situation of Pakistan is already pretty dire.

I think the government will again be introducing another round of simultaneous tax increases, spending cuts. All while PKR remains weak, and normal stabilising factors with inflation such as SBP rates are also working against credit and growth.

As for this Iran - US crisis, it also threatens Pakistan’s entire economic stability. We have had 12 months of major tax increases, spending cuts and deleveraging, which was caused by the current account imbalance. If a conflict kicks off, or say Saudi oil facilities are targeted again. Oil prices will rise, and this will damage our current account balance again and perhaps make our painful policies so far waste in vain.

 

[Mumm-Ra]

Every stock market responds to adverse security situations much in the same way. Take a look at NASDAZ etc.

"As of noon Friday, the Dow Jones fell over 170 points, while the Nasdaq and the S&P 500 dipped 39 and 14 points, respectively."https://www.nationalreview.com/news...n-war-speculation-despite-broader-market-dip/

 

[Syed1.]

Go to Bloomberg and check trend of any stock market in the world. A rally of a few days is followed by a little bit of profit taking and decline in the exchange. It's just that the PSX was rapidly rising for the past few months without any sign of slowing down for profit taking and this is what was causing headlines around the world. I expect the decline to continue for a week or more as people make a profit of their investment, before returning to bullish trend.


On top of that the regional security situation also might have a part to play in it.

My advice to people will be to first educate themselves before giving expert opinion on matters they don't have depth of knowledge on.