Karachi: Due to the adjustments of companies at the end of the calendar year, panic selling and the increasing trend of profit taking, the Pakistan Stock Exchange witnessed a historic downturn in the third session on Thursday and all previous records of downturn in one-day trading were broken.
Due to which the index also fell to 5 psychological levels of 111 thousand, 110 thousand, 190 thousand, 180 thousand and 170 thousand points. Due to the downturn, share prices fell by 78.60 percent.
While another 541 billion rupees 922 million 33 thousand 430 thousand rupees sank.
Although the economy was moving in the right direction due to positive indicators on the economic front, current account surplus, and ongoing reforms, the market gained 675 points at the start of trading, but within a few moments the market went into a downward spiral.
After the news of the government’s amendment to the income tax laws, including a ban on non-filers from purchasing shares above a certain limit, the decline intensified again in the afternoon due to aggressive capital withdrawal by mutual funds financial institutions and foreigners.
At the end of trading, the KSE 100 index closed at 106274.98 points, down 4795.32 points.
Speaking to Express, Aqeel Karim Dhedi Securities’ Director of Research, Owais Ashraf, said that the government’s move to prevent tax defaulters from holding mutual funds or any other type of investment accounts has created disappointment in the market, which is why the market is falling.
Speaking in this regard, Ahsan Mehmeti, Managing Director of Arif Habib Corporation, said that the market has witnessed a trend of excessive selling after the uncertainty regarding the possible measures taken by the State Bank of Pakistan on several policies.
In addition, the decline in global oil prices and institutional selling of shares are also the main reasons for the decline in the market.
Topline Securities said that the decline in the Pakistan Stock Market is of a historic nature as it has fallen by 5,132 points in a single trading day.
Stock experts say that the market had risen a lot, after which a correction was necessary, the record decline has been caused by the sale of shares by mutual funds.
