Profit-taking drags PSX down 1,356 points after recent rally

KARACHI: The Pakistan Stock Exchange (PSX) closed on a negative note on Thursday, as profit-taking dominated the session with investors booking gains after a strong rally, analysts said.

The benchmark KSE-100 index lost 1,356 points, or 0.90 per cent, to settle at 149,235.

“Stocks closed bearish after government bond yields remained flat in the SBP auction to stall inflationary pressures, and rupee instability,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

Bulls lose grip as profit-taking cools rally at PSX

Investor concerns over external debt, losses of state-owned enterprises, and uncertainty surrounding the outcome of the IMF’s next review for release of the third tranche under the Extended Fund Facility (EFF)—amid unmet conditions for provincial tax collection—also weighed on the market, he added.

Commercial banks, cement, and fertilizer sectors were the major laggards, cumulatively shedding 1,139 points from the index.

The session was marked by heightened intraday volatility. The index surged to a peak of 151,250 before retreating to a low of 148,273, largely driven by profit-taking sentiments, according to Topline Securities.

After hitting fresh highs in earlier sessions, the KSE-100 witnessed heavy selling pressure, dragging the market into negative territory. Banking, cement, fertilizer, automobile, and oil and gas exploration stocks came under pressure as investors opted to book gains.

Upward momentum in SEARL, OGDC, and SYS added 210 points to the index. However, this was outweighed by notable losses from MEBL, HBL, ENGRO, BAHL, and MCB, which collectively eroded 636 points.

Market participation remained strong, with traded volumes reaching 1.061 billion shares and aggregate turnover at Rs55.8 billion.