PSX posts its second biggest fall ever
Share prices dropped heavily on Tuesday, resulting in 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. As a result, the KSE-100 index closed at 62,833 points after losing 2,371.64 points or 3.6 per cent from the preceding session. Speaking to Dawn, Pak-Kuwait Investment Company Head of Research Samiullah Tariq said the sharp decline was because of 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. He said the market seems to be in the correction territory, which usually means a loss of 5-20pc in the index value. A correction in a stock market typically results in short-term damage but helps adjust the prices of overvalued shares in the long run. Leveraged traders, people who’ve used borrowed funds to buy shares, liquidated their positions in large numbers on Tuesday and caused a downward spiral, he said.