🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

KSE-100 index falls 1.01% amid profit-taking and refinery concerns

EditorPollock Mondal
Published 11/12/2023, 08:40
© Reuters.
KSE
-

Pakistan Stock Exchange (PSX) witnessed a sharp decline today as the KSE-100 index dropped by 666.07 points, closing at 65,557.56. This represents a 1.01% fall from its previous close of 66,223.63. The downturn is attributed to widespread profit-taking after a sustained rally and negative updates from the refinery sector that dampened investor sentiment.

Market analysts have identified several factors contributing to the drop. A significant reason for the sell-off was profit-taking by leveraged buyers who had capitalized on the previous bullish trend. Additionally, there's been a heightened sensitivity to potential shifts in monetary policy, with investors closely monitoring any news that could impact interest rates.

Despite the volatility and uncertainty regarding upcoming monetary policy statements, there remains a strong belief among some market participants that the index could rebound and even surpass the 74,000-point threshold. This optimism is rooted in expectations that the market will quickly recover from this setback and continue on an upward trajectory.

Investors are now looking ahead with caution, paying close attention to any changes in interest rates which could significantly influence stock performance. The recent pullback in the market also reflects concerns over clarifications on Pakistan State Oil's (PSO) involvement with Pakistan Refinery Ltd (PRL) investments.

Today's market movement has put an end to the record-breaking run at PSX, but it has not dampened the long-term positive outlook held by some analysts and investors. They anticipate that after this period of correction, the market will resume its bullish trend, provided that external economic factors remain stable.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.