Bears return to Pakistan Stock Exchange amid profit-taking

KARACHI: The Pakistan Stock Exchange (PSX) opened Tuesday’s session on a strong note, with the benchmark KSE-100 Index surging to an intraday high of 950 points.

However, the bullish momentum faded quickly as profit-taking pressure intensified, allowing the bears to regain control. The index plunged to an intraday low of 1,743 points before closing down at 137,964 — marking a decisive bearish session.

Investor sentiment turned negative largely due to speculation surrounding Engro Fertilizers (EFERT), with concerns of lower-than-expected earnings and dividends, Topline Securities said.

The much-anticipated financial results, initially scheduled for release today, were deferred to tomorrow morning, adding uncertainty and fuelling the selloff.

Also read: CDNS lowers profit rates on major savings schemes

According to Pearl Securities, early gains were driven by optimism over Finance Minister’s second visit to the United States within a fortnight — a trip aimed at finalising a bilateral trade agreement with Washington. Market participants viewed this as a potential catalyst for improved economic and trade stability.

However, profit-taking emerged in the latter half of the session, eroding early gains and dragging the index into negative territory, Pearl Securities added.

Ismail Iqbal Securities noted that the major decline came toward the end of the session, triggered by intensified selling.

The Commercial Banks, Cement, and Oil & Gas Exploration Companies sectors were the main laggards, collectively shedding 638 points. Top decliners — ENGROH, EFERT, UBL, HBL, and HUBC — together pulled the index down by 833 points.

In contrast, FFC, GHGL, and MEBL provided some support, collectively contributing 190 points.

Market activity remained robust, with total volumes reaching 603 million shares and turnover at Rs32.6 billion. TELE led the volume charts with 38.7 million shares traded.