Karachi: The KSE100 index experienced a significant downturn as it encountered sustained selling pressure throughout the trading session. The index reached an intraday low of 1,904 points before closing 1,690 points lower at 174,777. Market participation saw a notable decline, with trading volumes dropping by approximately 33% compared to the previous day.

According to AKD Securities Limited, from a technical standpoint, the KSE100 index's gap down on normal volume reflects a bearish sentiment. This could potentially lead to a runaway gap, suggesting a continuation of the current trend. Despite recent weakness, the index is still 1.8% above its 200-period moving average, maintaining an upward trajectory in the broader trend. Volatility remains extremely low compared to the average of the past 10 periods, but this low volatility raises the possibility of an upcoming expansion, which could bring sharper price fluctuations. Volume indicators point to a balanced flow of funds into and out of the KSE100, indicating a neutral volume outlook.