KARACHI: The Pakistan Stock Exchange (PSX) faced selling pressure, with the KSE-100 Index showing a significant drop of over 500 points during Thursday’s trading session. By 12:10pm, the benchmark index was at 64,130.02, marking a 516.82-point decline, equivalent to 0.80%.
Notably, sectors like cement, chemical, commercial banks, oil and gas exploration companies, and OMCS experienced selling, while automobile assemblers and refinery sectors exhibited positive trading trends.
On Wednesday, the KSE-100 index closed at 64,646.85, marking a 297.25-point surge or 0.46% increase. Internationally, Asian markets sustained a lackluster beginning to the year on Thursday, mirroring Wall Street’s downturn following the Federal Reserve’s December meeting minutes. The robust global upsurge witnessed in the final months of 2023 has waned at the onset of the new year due to concerns that the market surge may have outpaced its fundamentals, prompting traders to pause.
The market’s downward trend intensified on Wednesday when the Fed minutes revealed officials’ intent to maintain higher interest rates for a prolonged period to ensure inflation remains in check. This revelation notably shook confidence among investors who had anticipated rate cuts as early as March, aligning with the bank’s previous statement projecting three reductions in 2024.
