Bearish Trend Dominates PSX as KMI-30 Records Sharp Decline

The Pakistan Stock Exchange witnessed a bearish trend on Friday and the KMI-30 index witnessed a significant decline, mainly due to selling pressure and cautious trading activities by big investors.

According to market data released by PSX, the KMI-30 index closed at 238,952.40 points after a decline of 1,388.17 points. The index had started the trading day at 240,987.19 points, while the market remained volatile throughout the day.

The index recorded a high of 241,092.05 points and a low of 238,253.73 points during the trading session. A total of 97 million shares were traded in the market, indicating limited investor interest.

According to analysts, investors are currently reacting cautiously to news related to the country’s economic situation, budget proposals, interest rates and global financial trends. Shares in the energy, fertilizer and cement sectors were particularly under pressure in the market.

ENGRO had the biggest negative impact and dragged the index down by 650.53 points. Apart from this, shares of FFC, LUCK, OGDC and MEBL also suffered significant losses. Market experts say that selling by large institutional investors increased the pressure on these shares.

On the other hand, SAZEW performed positively and provided support to the index by 187.30 points. ATRL, PSO, NRL and SYS also supported the market to some extent, but the overall trend remained negative.

Financial experts say that although today’s session was negative, the FYTD performance of the KMI-30 index is 29.24% positive, indicating that there are still long-term prospects in the market. In contrast, the index is down 3.86% on CYTD basis.

According to economic circles, investors are waiting for the budget for the next fiscal year and announcements related to government economic reforms. They say that if steps are taken to provide relief to the business community, the market may pick up again.

Brokerage firms have predicted that market volatility may persist in the coming days, especially if uncertainty persists in global markets. However, investing in companies with strong fundamentals may yield better results in the future.

Experts have advised investors to avoid emotional decisions and adopt a balanced portfolio to benefit from a potential market recovery.