Stocks slip amid consolidation of positions

KSE-100 index falls 1,497 points as major sectors face selling pressure

KARACHI:

In yet another volatile session, the Pakistan Stock Exchange (PSX) on Wednesday experienced a broad-based decline as investors remained cautious, which pulled the benchmark KSE-100 index down by nearly 1,500 points.

In the morning, the market opened on a positive note, which briefly lifted the index, but early gains evaporated when investors trimmed their positions in the absence of positive triggers. The index moved in a narrow band throughout the session, fluctuating between the intra-day high of 168,161 and the low of 166,115. At close, the KSE-100 settled at 166,145.35, down 1,496.93 points, or 0.89%.

KTrade Securities observed that the PSX faced continued selling pressure after its recent strong rally, which fell just short of the all-time high hit in October. The KSE-100 index slipped 1,497 points (-0.89%). Trading remained largely range bound, where Fauji Fertiliser, Meezan Bank, United Bank, Hub Power and Engro Holdings came under pressure. On the other hand, TRG Pakistan bucked the trend along with OGDC, Pioneer Cement and Faysal Bank, it said.

Looking ahead, KTrade expected the sentiment to remain constructive, fuelled by the IMF board meeting scheduled for December 8.

Topline Securities commented that the local bourse concluded trading on a muted note, settling at 166,145 after shedding 1,497 points. The benchmark index remained highly volatile throughout the day, swinging between the intra-day peak of 168,161 and the trough of 166,115, as news of institutional selling weighed on the market.

Sentiment remained under pressure, caused by heavyweights including Fauji Fertiliser, Meezan Bank, United Bank, Hub Power and Engro. Collectively, these stocks wiped off 858 points from the index, it said.

As anticipated, the PSX continued its consolidation between the 166k and 168k range, with the KSE-100 closing at 166,145, down 1,497 points, said Arif Habib Limited Deputy Head of Trading Ali Najib. The session opened on a positive footing, briefly pushing the index to the intra-day high of 168,161 (+519 points). However, the early momentum faded as investors opted to trim positions amid the absence of fresh positive triggers, he said.