Trading Activity and Market Value Decline

The market saw a significant slowdown in trading activity. The total number of shares traded in the ready market dropped sharply to 490.35 million from 768.05 million in the last session. The value of these trades also fell to Rs23.67 billion from Rs28.64 billion. Consequently, the market’s total value, or capitalisation, decreased to Rs18.468 trillion from Rs18.512 trillion.

Winners and Losers on the PSX

Out of 477 active companies, more than half—247—declined, while only 191 managed to close higher. The day's trading was dominated by volume contracts led by PIA Holding Company with 63.28 million shares changing hands. The biggest gainers were The Thal Industries Corporation Limited, which climbed by Rs57.00 to Rs715.59, and Shield Corporation Limited, which rose by Rs49.37 to Rs543.05.

Major Price Drops Hit High-Value Stocks

Conversely, some high-priced shares suffered heavy losses. The major losers included PIA Holding Company Limited-B, which fell by Rs256.99 to close at Rs24,305.01, and Unilever Pakistan Foods Limited, which dropped by Rs218.29 to close at Rs29,150.00.

Futures Market Sees a Surge

Interestingly, while the ready market slowed down, the futures market saw a massive jump in activity. Turnover in the futures segment more than doubled to 389.38 million shares, with a huge traded value of Rs33.27 billion, up from Rs7.75 billion the previous day. This segment also showed a bearish tilt, with 223 out of 318 companies declining.

Expert Analysis

The fact that the overall index fell despite a massive surge in futures trading suggests that institutional investors were actively hedging or taking short positions, expecting further declines.

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The drop in trade volume and market capitalisation indicates general risk-aversion, meaning many investors are selling or sitting on the sidelines due to economic uncertainty.