PSX tumbles 1.4pc as downturn enters fifth day

Despite continued downward interest rate trajectory and relative political calm, the Pakistan Stock Exchange (PSX) witnessed a ruthless bloodbath on Thursday, extending the losing streak to a fifth straight session due to an unabated institutional selling spree, pulling the benchmark KSE 100 index below the psychological barrier of 110,000 intraday. Topline Securities Ltd said such was the selling pressure that the index sank to an intraday low by 2,529 points at 109,405.54 before closing at 110,301.16, reflecting a sharp decline of 1,634.22 points or 1.46pc day-on-day. The persistent negative sentiment can be attributed to continuous institutional selling over the past week, which severely dented investor confidence. The drop was primarily driven by Engro Holdings, Fauji Fertiliser, Mari Energies, Systems Ltd and Pakistan Petroleum, which cumulatively wiped out 675 points from the index. Ahsan Mehanti of Arif Habib Corporation said stocks closed sharply lower amid worries over prospects of foreign debt repayments and EU review on GSP+ status.