ISLAMABAD: Selling pressures hovered over the market for the second day as the Pakistan Stock Exchange (PSX) 100 index went down nearly 4% to lose a huge 2371 points on Tuesday after the last day’s bearish trend of over 900 points. At close, the benchmark index settled at 62,833.03, with a major second decrease since March 16, 2020 (when the index lost 2375 points).
Market experts attributed the key bearish trend to the expected selling sentiment coupled with profit-taking and correction process as on December 12, the market even surpassed the 66400 mark, and a follow-up bearish trend was expected.
On Tuesday, selling was witnessed across the board, including heavy sectors like automobile assemblers, chemical, commercial banks, cement, oil and gas exploration companies, OMCs, pharmaceuticals, refinery sector etc remained in the red zone.
Meanwhile, amid the major bearish trend, the total volume went down to 1.51 billion from the previous day’s stand of 1.89 billion. However, the value of shares went up to Rs29.1 billion from its last day stand of Rs24.6 billion.
During the trade, K-Electric Limited remained the volume leader among the top three trading companies with 341.06 million shares, followed by WorldCall Telecom with 176.03 million, whereas Cnergyico PK settled as number three from the top at 131.72 million shares.
On Tuesday, 386 companies traded their shares, 31 recorded gains, and 351 witnessed losses, whereas the share prices of four companies remained unchanged.
Bullish Trend at PSX Taking Stop-Over
During the last 2 months, the market enjoyed a significant Bullish trend, while during the last several months, the KSE-100 Index has witnessed a recorded bullish run while gaining about 60%. Only in the last two months has the market gained over 14000 points. In November, the 100-index gained over 8000 points, while during the last five months, the 100-index achieved a historic 24000 plus points.
In addition, the last couple of weeks witnessed a number of consecutive all-time highs at PSX. After breaking a few records in the middle of November, the index surpassed a new historic high and crossed the 58000 mark. During the last week of November, the index reached above 60000 points. Meanwhile, the 100-index continued the same bullish trend in the first quarter of December, and till December 15, it gained over 5000 points.
However, from the last two days, the market switched over to the bearish trend with a massive decline on Tuesday as after a long bullish trend, the market was occupied by selling pressure.
