KSE-100 plummets by 1200 points as bear begins to rule in intraday trade

The Pakistan Stock Exchange (PSX) experienced a sharp decline on Thursday, as the shares plunged by 1200 points during intraday trading due to bearish market conditions.

Following a brief initial uptick, the market suddenly lost 1,432.23 points at 9:38 am. However, with a minor recovery of 224.23, it reached 111,206.24 points at 1:11 PM but could not regain the previous volume. 

The KSE-100 index showed a decline of 1,208 points from the previous day intraday trading, closing at 112,414.80.

Director of research at Chase Securities, Muhammad Farooq stated that the political uncertainty with neighbourly Afghanistan impacted the shares, as Pakistan launched air strikes on terrorist camps in Barmal district. 

Nevertheless, he also said that the investor’s confidence was bringing up as “market trailing earnings yields remain above the long-term average, indicating the potential for above-average long-term returns for investors,” he said. 

Top Securities' CEO, Mohammad Sohail, linked the bearish rule with the year ending, saying, "rising leverage and ending contracts" were impacting the market.

However, he also sees the "ongoing security situation at the border" as a contributing factor to the decline, which more or less affects investor sentiment.

Yesterday, after two consecutive recovery sessions following the market crash last week, the stock market succumbed to bearish pressure again, causing an Rs690 billion loss for investors in a single day.