PSX retreats as investors resort to profit-taking at highs

KSE-100 index gives up early gains, loses 165 points at close

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KARACHI:

After riding high on a wave of optimism in the previous session, the Pakistan Stock Exchange (PSX) reversed course on Wednesday as investors opted to lock in profits. The KSE-100 index slipped 165 points, closing at 139,254.

Despite an early push that saw the index touch 140,202, selling pressure weighed through the remainder of the session, reflecting a cautious flip in sentiment.

KTrade Securities wrote in its market wrap that the PSX witnessed a mixed session as investors opted to book profits at market highs, leading to a slight pullback in the benchmark index.

The index touched an intra-day high of 140,202 before retreating on selling pressure. KTrade expected the mixed trend to persist, with heightened volatility due to futures rollover and the ongoing earnings season, which may keep sentiment cautious. Among key negative contributors were Engro Holdings, HBL, MCB Bank, and Pakgen Power.

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Arif Habib Limited (AHL) commented that the PSX failed to hold early gains above 140,200 and fell for the remainder of the session. Some 39 shares rose while 60 fell, with Bank AL Habib (+1.95%), Mari Petroleum (+1.04%), and Hub Power (+0.87%) being the key contributors to index gains. In contrast, Engro Holdings (-1.23%), Habib Bank (-1.23%), and Pakgen Power (-6.8%) were the biggest drags.

During the trading session, PIA Holding Company (-1.2%) saw pressure as the airline’s buyer would be required to invest Rs70 billion over five years under the revised business plan. Pre-qualified bidders are set to begin site visits and expert sessions from next week, AHL said.

In addition, the State Bank of Pakistan’s monetary policy announcement is scheduled for July 30. Among corporate announcements, Systems Ltd (+0.91%) was considering a potential acquisition in the IT and IT-enabled services space.

AHL expected the market outlook to remain positive, with focus still on 140,500 this week.

Overall trading volumes increased to 656.6 million shares compared with Tuesday’s tally of 629 million. Traded value stood at Rs32 billion. Shares of 483 companies were traded. Of these, 211 stocks closed higher, 243 fell, and 29 remained unchanged. WorldCall Telecom topped the volumes chart with trading in 55.4 million shares, rising Rs0.08 to close at Rs1.54.