3pc<\/a> 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.<\/p>\n\u201cThis poses a significant challenge for countries like Pakistan, which heavily rely on oil imports,\u201d Rizvi said.<\/p>\n
He further anticipated that the market would \u201cundergo a corrective phase until the end of December, with a crucial support level at 64,500\u201d. Rizvi advised investors to \u201cexercise caution at these levels\u201d.<\/p>\n
Meanwhile, Raza Jafri, head of equities at Intermarket Securities, said: \u201cWith the KSE-100 having arguably demonstrated an election rally in the last few months, earlier than the usual pattern, some pre-poll anxiety may be creeping in now.\u201d<\/p>\n
\u201cPositions built on leverage may also be witnessing margin calls, adding to the pressure,\u201d he added.<\/p>\n
Margin calls are particularly common in volatile markets where prices may fall very quickly. If the equity in an investor\u2019s account falls below the maintenance margin, a brokerage will issue a \u201cmargin call\u201d which forces the investor to either liquidate their position in the stock or add more cash to the account.<\/p>\n
Mohammed Sohail, chief executive of Topline Securities, echoed similiar sentiments of \u201cover-bought and highly leveraged position forcing investors to trim their positions\u201d.<\/p>\n
He added that the margin call-led selling occurred during a time when \u201cfinancing rates are usually higher due to year-end\u201d.<\/p>\n
Syed Fawad Basir, head of research at Al-Habib Capital Markets, highlighted that redemption in a few mutual funds had continued for a second day in a row, coupled \u201cwith margin calls on leveraged buying\u201d.<\/p>\n
\u201cThat said, a slightly longer-term view remains intact that correction has been due,\u201d he said.<\/p>\n
Basir observed that there was a brief recovery noted in the index possibly due to the news of fresh funds for government-owned power plants. However, that was left in the dust as bears continued their stampede.<\/p>\n\n
More to follow<\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"The Pakistan Stock Exchange (PSX) witnessed accelerated selling pressure on Tuesday as the benchmark index shed more than 2,000 points in intraday trading. 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 […]<\/p>\n","protected":false},"author":2,"featured_media":37287,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/i.dawn.com\/large\/2023\/12\/19144512a62df4e.png?r=144544","fifu_image_alt":"","footnotes":""},"categories":[192],"tags":[],"class_list":["post-37286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-islamabad-news"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/37286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/comments?post=37286"}],"version-history":[{"count":0,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/37286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media\/37287"}],"wp:attachment":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media?parent=37286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/categories?post=37286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/tags?post=37286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}