Profit-taking breaks record-breaking streak, KSE-100 down 0.62pc

KARACHI: The Pakistan Stock Exchange’s benchmark KSE-100 Index closed the session at 132,577 on Wednesday, shedding 826 points or 0.62 per cent, after witnessing a long bullish streak.

The market saw a phase of consolidation, fluctuating between an intraday high of 133,566 and a low of 132,326, as investors opted for profit-taking, Topline Securities said.

During the session, the market witnessed a sharp sell-off, hitting an intraday low of 132,326.17 points. Profit-taking dominated the session, while rumours of delays in circular debt payments further dampened investor sentiment, Al Habib Capital Markets stated.  

However, some positive developments supported the market and limited further decline. These included DIB arranging $1 billion in sovereign financing for Pakistan, a surge in software services exports that crossed $1 billion for the first time and total services exports rising to $7.65 billion.

“Stocks closed under pressure on institutional profit-taking in over bought scrips amid foreign outflows and weak global equities on concerns over US import tariffs,” Ahsan Mehanti, CEO at Arif Habib Commodities said.

Rupee instability, uncertainty over outcome of ADB, and serious concerns on compliance of FBR tax revenue on wider tax base played a catalyst role in bearish activity at PSX, Mehanti added.

Meanwhile, the decline was mainly driven by negative contributions from FFC, ENGROH, BAHL, PSO, and HBL, which together pulled the index down by 397 points.

However, overall market participation remained strong, with trading volume reaching 903 million shares with a total turnover of Rs30 billion. TPLP led the volume charts, with 65 million.

The latest losses followed the last session Tuesday, which had seen the KSE-100 Index ending the day flat with a modest gain of 33 points or 0.02 per cent.