PSX: KSE-100 dips after crossing intra-day high of 91,800

Benchmark index settled at 90,286, down by 577 points from Tuesday

Profit-taking at the Pakistan Stock Exchange (PSX) erased all intra-day gains, pushing stocks into the red after the benchmark KSE-100 Index reached new heights on Wednesday.

Following a strong buying spree over the past seven sessions, the KSE-100 opened positively, hitting an intra-day high of 91,872.63. However, profit-taking in the latter hours pushed the index into negative territory, resulting in an intra-day low of 90,003.31.

At the close, the benchmark index settled at 90,286.57, down by 577.52 points, or 0.64%. A key factor influencing market behaviour was the heightened anticipation surrounding the T-bill auction, with investors closely monitoring its outcome. 

The auction is expected to provide further clarity on the direction of interest rates, which could significantly shape near-term market dynamics, according to Topline Securities.

On the performance front, key contributors to the index included Systems Limited (SYS), Pakistan Petroleum Limited (PPL), GlaxoSmithKline (GLAXO), Engro Fertilizers (EFERT), and Allied Bank Limited (ABL), collectively adding 264 points. 

However, this positive momentum was overshadowed by major laggards such as Fauji Fertilizer Company (FFC), National Bank of Pakistan (NBP), Hub Power Company (HUBC), United Bank Limited (UBL), and Habib Bank Limited (HBL), which together deducted 360 points from the index.

In the past seven sessions, the KSE-100 had gained more than 5,600 points amid positive indicators. Bullish momentum has persisted at the PSX, buoyed by strong corporate results that have bolstered investor confidence. 

Anticipation of a significant policy rate cut from Pakistan’s central bank during the upcoming Monetary Policy Committee (MPC) meeting next week is also fuelling the ongoing rally.

On Tuesday, the PSX maintained its positive trajectory, hitting all-time highs driven by strong investor interest and healthy buying, with the KSE-100 Index surging by 668.57 points, or 0.74%, to close at its highest-ever level of 90,864.09 points. 

However, some analysts suggested that a correction was overdue, as the KSE-100 had scaled new peaks almost every session.

Trading volume on the all-share index increased to 614.56 million shares from 602.81 million on Tuesday, while the value of shares declined to Rs27.34 billion from Rs28.20 billion in the previous session. A total of 446 companies were traded on Wednesday, with 158 registering an increase, 235 recording a decline, and 53 remaining unchanged.

Meanwhile, the rupee remained stable against the US dollar, depreciating by 0.02% in the inter-bank market on Wednesday. At the close, the currency settled at 277.79, down by Rs0.05 against the greenback.