Bears have taken control of the PSX as it saw a 2300 point drop

 

The Pakistan Stock Exchange (PSX) faced intensified selling pressure on Tuesday as the benchmark index fell above 2,300 points.

Exchange was flat 10 minutes after the opening bell, according to the PSX website. At 10:49 am, the market began a gradual decline, with the KSE-100 index falling by 1,186.19 points to 64,018.48 points from 65,204.67 previously. The index closed at 62,833.03, still down 2,371.6 points, down 3.64 percentage points from Monday. A day earlier, the benchmark index fell 925.35 points after investors took profits. Stocks in the mining and manufacturing, fertilizer and banking sectors had a negative impact.

Head of JH Investments, Junaid Zaveri, said: "The market has not been affected by the recession, the situation in Pakistan is improving, the market has entered an overbought situation, the index has also risen significantly, due to which a correction is needed."

Mohammed Sohail, managing director of Topline Securities, echoed similar sentiments about the "overbought and highly inflated position, forcing investors to cut their positions." He added that the sale of the rando call came at a time when "financial interest rates tend to be higher because of the end of the year."

Syed Fawad Basir, head of research at Al-Habib Capital Markets, pointed out that redemptions continued for a second day in a row at some investment funds - the funds previously sold shares worth $2.8 million - with a debt-based margin. call to buy".

Faran Rizvi, head of equity sales at JS Global, attributed the drop to "increased geopolitical tensions" that have pushed up global oil prices. A day earlier, global oil prices rose 3 percent as increasing attacks on ships in Yemen's Red Sea by the Iran-aligned Houthi group disrupted maritime trade. Oil major BP said it had temporarily suspended all shipments through the waterway. "This is a major challenge for countries like Pakistan that are heavily dependent on oil imports," Rizvi said. He further expected the market to go through a correction phase by the end of December, with the crucial support level at 64,500. Rizvi advised investors to be cautious at these levels.

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