Profit-taking ends PSX rally, KSE-100 sheds over 300 points

The Pakistan Stock Exchange (PSX) experienced a mixed trading session on Wednesday, with the benchmark KSE-100 Index initially rising due to strong buying momentum, but later losing over 300 points due to profit-taking by investors.

The trading session began on a positive note, with the KSE-100 Index climbing to an intra-day high of 96,711 points.

However, the market faced a decline as the day progressed, with investors opting to book profits on available gains.

By the close of trading, the benchmark index settled at 95,546.45 points, down by 310.21 points or 0.32%.

Despite the dip, market sentiment remains positive, supported by favorable macroeconomic indicators, including a decrease in inflation rates.

The current upward trend has been ongoing for weeks, with investor sentiment high and demand driving new records in Pakistan’s stock market. Key sectors, especially banking and energy, continue to attract substantial investments.

Yesterday, PSX continued with bullish trend as KSE-100 index closed at 95,856.66 points (0.91%) up from the previous close of 94,995.67 points.

The benchmark KSE-100 index gained 860.99 points to close at 95,856.66.

The trading session reflected moderate optimism, with a volume of 377,802,244 shares changing hands, and a total value of Rs3.77 billion recorded.

Additionally, the finance minister's dismissal of a mini-budget, coupled with encouraging talks with the IMF, fueled optimism at the bourse.

"Stocks closed at a new all-time high on reports of current account surplus of $349 million in October," said Ahsan Mehanti, Managing Director of Arif Habib Corp.

Investors weighed the surging forex reserves, the government's decision on SOE reforms, IPP pricing, the finance minister ruling out a mini-budget and positive meetings with the IMF, which spurred bullish activity at the PSX, he said.

At the close of trading, the benchmark KSE-100 index posted an increase of 232.03 points, or 0.24%, and settled at 94,995.67.

Arif Habib Limited (AHL), in its report, stated that the KSE-100 index closed above the 95,000 mark in the first session of the week, reflecting a positive market sentiment.

A total of 44 shares advanced while 54 declined. Key contributors to the index gains were Fauji Fertiliser Company (FFC, +1.8%), HBL (+3.35%) and Pakistan Services (+7.98%). On the downside, the largest drags were UBL (-1.25%), Engro Fertilisers (-1.4%) and Hubco (-1.2%).

Among corporate news, FFC raised its offer for the acquisition of 151 million shares of Agritech Limited, now offering Rs39.05 per share, up from its previous offer of Rs38.84, it said.

On the macroeconomic front, Pakistan's October current account posted a surplus of $349 million compared to a deficit of $287 million in the same month of last year, signalling an improvement in the country's external account position, AHL said.