The KSE100 Index lost 1,579 points today and dropped 1.97% to close at 78,539.
The Pakistan Stock Exchange (PSX) continued its downward trend today, following a significant loss of 1,722 points, or 2.1%, on the previous working day, triggered by political remarks and Fitch's comments on potential interim changes. Despite this, there was higher-than-usual net buying by foreign corporates, amounting to $2.37 million. Overseas Pakistanis were also more active than usual, with net buying of $1.421 million.
Last Friday, the sell-off was led by insurance companies, which made net sales of close to $10 million, while local mutual funds were net buyers. Today, the roles reversed: local mutual funds made net sales of $3.3 million, while insurance companies made net purchases of $3.5 million.
It will be interesting to see how they act for the rest of the week, given that insurance companies and local mutual funds operate under different dynamics.
