The Pakistan Stock Exchange (PSX) witnessed accelerated selling pressure for the second consecutive day on Tuesday as the benchmark index opened in the red.
According to the PSX website, the bourse stayed flat for 10 minutes after the opening bell. At 10:49am, the market began its gradual slide with the KSE-100 index plunging by 1186.19 points to sink to 64,018.48 from the previous close of 65,204.67.
A day earlier, the benchmark of major shares lost 925.35 points after investors resorted to profit-taking. Negative contributions came from stocks in exploration and production, fertiliser and banking sectors.
Faran Rizvi, head of equity sales at JS Global, attributed the bearish momentum to “heightened geopolitical tensions” which have caused the global oil prices to surge.
A day earlier, global oil prices rose 3pc as mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea disrupted maritime trade. Oil major BP said it had temporarily paused all transits through the body of water.
“This poses a significant challenge for countries like Pakistan, which heavily rely on oil imports,” Rizvi said.
He further anticipated that the market would “undergo a corrective phase until the end of December, with a crucial support level at 64,500”. Rizvi advised investors to “exercise caution at these levels”.
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