KARACHI: The 100-index of Pakistan Stock Exchange (PSX) nosedived by 1,100 points at mid-day following the selling pressure from government institutions like NBP-Fund and continuous rising leverage in future stocks. Analysts claimed the total leverage of the market had touched Rs 69 billion. The market is being traded at around 44,000 at 12:00 here on Tuesday.
The sources in the stock exchange claimed that there was heavy selling pressure on the stocks as the mutual fund like NBP-Fund started off-loading their stocks. The market suddenly went down by 800-900 points in 30 to 40 minutes, market experts claimed.
Mohammed Sohail, CEO of Topline Brokerage Firm said, “political noise and rising inflation affect the over-leveraged market.”
The analysts believed that the demand of Gilgit-Baltistan for an interim province has also given a native impact on the stock market, adding that our CPAC development is also linked with it.
“First the market is following the global trend of correction and our market had a speculative speciation in some stocks, like tech, cement, and steel,” said Muzammil Aslam, CEO Tangent Capital Advisory.
Aslam further said the unconventional stocks like tech. Cement and steel, were so high from their fair value, while the real economy stocks like oil and gas, energy were still at 30 percent to 40 percent discount.
“That called in panic selling, there is an end to everything,” he added.