PSX Weekly Report: Index correction due to high volatility, loss of Rs 160 billion

The Pakistan Stock Exchange (PSX) experienced extraordinary volatility last trading week, where the market turned bearish due to profit-taking after touching its highest level.

Index Status and Volatility:

This week was nothing short of a roller coaster for the KSE 100 Index. During the week, the index reached a historic high of 157,347; however, due to political and economic news, the index saw a severe correction, and at one point it fell to the level of 144,656. The index closed at 150,398 with a total decline of 1,308 points at the end of the week.

Investor reaction and trading volume:

The bearish trend in the market dealt a severe blow to the total capitalisation, and it fell by Rs 160 billion to Rs 16,725 billion. Trading activity in the stock market remained brisk:

• Total shares traded: 2.45 billion shares
• Total value of trade: Rs 140 billion

Analysts’ opinion:

Economists say that the movement of the index in a wide band of 12,690 points shows that there is uncertainty in the market at the moment. Investors are being advised to be cautious in the current situation and prefer shares of strong companies on a long-term basis. Immediate relief packages and continuity in economic policies are needed at the government level to stabilise the market again.