PSX Witnesses Largest Single-Day Decline as KSE-100 Index Plummets 3.3%

The Pakistan Stock Exchange (PSX) experienced a volatile session on Wednesday, December 18, as the benchmark KSE-100 Index saw its largest single-day decline in history, plummeting by 3,790.39 points or 3.30% to close at 111,070.29.

The selling pressure was attributed to profit-taking, following a surplus of $729 million in November 2024 and a reduction in the policy rate. Key sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation, and refinery stocks witnessed across-the-board selling, leading to a decline in the index. Top losers included MARI (-10.00%), NBP (-10.00%), NML (-8.43%), PGLC (-8.34%), and PABC (-8.08%).

In contrast, top gainers in the market were POML (+6.34%), PSO (+5.13%), HGFA (+2.62%), INDU (+2.17%), and BOP (+1.09%). The KSE-100 Index has still managed to showcase resilience, gaining 32,625 points or 41.59% during the fiscal year, and 48,619 points or 77.85% so far this calendar year. The All-Share Index closed at 70,168.45 with a net loss of 2,171.58 points or 3.00%.

Analysts such as Yousuf M. Farooq and Awais Ashraf attributed the decline to concerns over currency depreciation and worries about stock overvaluation. Farooq advised investors to avoid reacting to short-term market fluctuations and focus on building diversified portfolios, prioritizing quality, growth, longevity, and price. On the other hand, Ashraf emphasized concerns over currency depreciation following yesterday's data and worries about stock overvaluation.

As the market continues to navigate these challenges, investors will be watching the developments closely. With the KSE-100 Index still showing resilience, despite the significant decline, the trend seems to be indicating a need for caution and a long-term perspective.