Bears continued their stampede at the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark index shed over 1,000 points in intraday trading.
According to the PSX website, the KSE-100 index plunged by 1484.58 points at 1:40pm to sink to 61,348.45, down 2.21 per cent from the previous close of 62,833.03.
A day earlier, shares witnessed the second-biggest overnight fall in the 32-year history of the benchmark index. As many as 94 shares of the KSE-100 index took a beating while the remaining six shares either advanced or closed flat.
Analysts had attributed the sharp decline to profit-taking by investors who believed the market was heating up after a rapid gain of 25,000 points to the index in the last few months.
Speaking to Dawn.com today, Shahbaz Ashraf, chief investment officer at Karachi-based investment company FRIM Ventures, attributed the downward spiral to a number of factors.
He said the leveraged position was “being squared up as leverage has doubled to Rs40 billion from Rs20bn in the last few months”. The banking sector was also booking profits as it aimed to realise gains.
However, Ashraf noted that the fundamentals behind the trade remained the same.
More to follow
from The Dawn News - Home https://ift.tt/SYjgfEX
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