KSE-100 Slumps by More Than 4,000 Points

Ahmed Raza
KSE-100 Slumps by More Than 4,000 Points

On Monday, the Pakistan Stock Exchange (PSX) saw an abrupt sell-off. Investor concerns were heightened by escalating tensions along its eastern border and this caused the benchmark KSE-100 Index to drop more than 4,000 points in early trading.

During the day, The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index hit an intra-day low at 158,704 points and this was 4,394 points down from the level of 163,098.19 over the last close.

“This is a general correction, and as a natural part of this process it involves a re-evaluation by investors of the effects of an evolving situation and tensions along China’s eastern boundary,” said one analyst.

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In all the sectors that count, there was a heavy sell-off, including automobile assemblers, cement, commercial banks, fertilizer, exploration for oil and natural gas, oil marketing companies, refineries, and power generation. HUBCO, MARI, OGDC, PPL, POL, HBL and UBL traded deep into red territory.

Waqas Ghani, head of research at JS Global, supported these beliefs and attributed the market’s decine to weakened investor confidence following the case at the Pakistan-Afghanistan border. “Investors are still taking a wait-and see attitude, and they’re also cashing in,” he said.

The market’s decline was followed by fierce overnight clashes along the Pak-Afghan border. According to a statement from the Inter-Services Public Relations (ISPR), 23 Pakistani soldiers were killed and more than 200 militants died after an unprovoked attack from Afghan soil. The military’s media wing released a statement that fighting broke out late Saturday evening following an offensive by Taliban fighters from neighbouring Afghanistan and their associates, including Tehreek-e-Taliban Pakistan (TTP).

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