Islamabad, Dec 18: The Pakistan Stock Exchange (PSX) witnessed a severe bear market on Tuesday, with the benchmark KSE-100 index plunging by nearly 3,800 points, marking a dramatic loss for investors. The index closed at 111,070.29 points, down 3.41% from the previous session, signaling the largest single-day point drop in its history. This sharp decline surpassed the previous significant loss of 3,505.62 points on November 26, 2024.
According to brokerage firm Topline Securities, profit-taking by investors led to the massive sell-off, with local mutual funds, which had been net buyers for the past 14 consecutive sessions, shifting to net sellers. This change in market sentiment contributed to further downward pressure on stock prices. The primary drivers behind the steep decline were major stocks such as MARI, FFC, HUBC, PPL, and MEBL, which collectively accounted for a significant portion of the index’s losses, totaling 1,731 points.
The trading day saw a total of 1,109,421,372 shares changing hands, down from 1,252,980,316 shares traded the previous day. The total value of shares traded stood at Rs. 60.14 billion, compared to Rs. 62.72 billion in the last session. Of the 472 companies that traded on the PSX, 89 recorded gains, while 349 suffered losses, and 34 companies saw no change in their share prices.
This sharp decline highlights the volatility in the market, as investors react to profit-taking strategies, and further uncertainties loom over the stock market’s performance in the near term.
