KARACHI: Bears took control of the Pakistan Stock Exchange (PSX) on Tuesday as the market witnessed the biggest single-day decline with benchmark index plunging by over 2,500 points. 

The KSE-100 dipped to a low of 59,170.97 points, down by 2,534.12 points or 4.11%, from the previous close of 61,705.09 points, according to the PSX website.

According to Karachi-based brokerage firm, Arif Habib Limited, KSE-100 index witnessed highest ever decline today, dropping 11% from its peak of 66,427 points.

Head of Equities at Intermarket Securities Raza Jafri told the publication that leveraged positions may possibly still be unwinding, however, volumes are on the thinner side.

“It is possible the corrective phase runs its course out this week, and that January opens on a more positive note,” he added. 

Khurram Schehzad, CEO of the Alpha Beta Core financial advisory firm, called it “Black Tuesday” for the PSX. 

Head of Research at Pakistan-Kuwait Investment, Samiullah Tariq, said that there were several factors affecting the market including year-end correction and profit taking. 

Stocks ended the previous week on a low note as investors cashed in their profits while the next week was expected to see subdued trading activity due to the rollover period and the long holidays, The News reported citing dealers.

“We expect subdued interest from foreign investors in the market owing to long holidays,” brokerage Arif Habib Ltd said in a note. “Additionally, the upcoming week marks a rollover period that investors will closely monitor.”

“Moreover, we observe that stocks persistently offer attractive valuations, possibly enticing investors.”

The market closed at 61,705 points, declining by 4,425 points or 6.7 percent week on week.