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Bears cemented their position on the trade floor once again as the KSE-100 traded in the red on Tuesday, a continuing trend from previous week.
According to the PSX website, the KSE-100 index shed much of its records and dipped by 1356.16, sinking to 60,348.93 points at 10:54am from the previous close of 61,705.09. However by 3:20pm, the index plunged by 2515.98 points, or 4.08pc, to stand at 59,189.11.
Faran Rizvi, head of equity sales at JS Global, said, “Investor confidence is being rattled by political uncertainties and, should this instability persist, it may trigger further corrective movements in the market.”
“The index’s key support level rests at 58,500,” he added.
Rizvi recommended a “buy on dip” approach, particularly focusing on value stocks.
A buy on dip is a strategy where investors buy stocks during a short-term price dip, anticipating price recovery in the near future.
Mohammed Sohail, chief executive of Topline Securities, in a post on X, wrote that the index was undergoing a “much needed” corrective phase as the index had made rapid gains previously.
He further attributed the downward spiral to a “high leveraged position” and a change in market trends as the year came to an end.
Raza Jafri, head of equities at Intermarket Securities, echoed the same sentiments, stating that the “leveraged positions continue to unwind, similar to last week”.
However, he added on a positive note that the market “should be in a more stable position from January onwards”.
More to follow
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