PSX rally hits pause button as KSE-100 ends lower after volatile session

After several days of steady gains, Pakistan Stock Exchange saw its rally paused as early optimism faded, leaving the benchmark index slightly lower by over 294 points.

The day moved through shifting emotions in a session that opened with a gentle wave of optimism, investors cheered the central bank’s 50 basis-point reduction in the policy rate, lifting the index to a new all-time intra-day high of 171,922.60 during the early hours of trading.

However, this initial confidence proved short-lived. As the day unfolded, the market’s tone gradually softened, with steady profit-taking in heavyweight stocks across the exploration and production, energy, fertiliser, and cement sectors slowly erasing the earlier gains.

Volatility crept back into the market by the final hours that pushed the index down to an intra-day low of 170,191.98, before it found its footing near the close. At close of the trading, benchmark KSE-100 index slipped 294 points, or 0.17%, to settle at 170,447.30.

Ismail Iqbal Securities shared that the benchmark index closed on a slightly negative note after a volatile session. The market opened on a positive footing and registered a new all-time intra-day high as investors initially celebrated the surprise rate cut; however, gains were eroded later in the session as volatility picked up towards the close. 

Trading volumes increased to 475million shares as compared to 410million shares in the previous session. KSE-100 index lost 294 points to close at 170,447 level, down by -0.17% DoD. Sectors wise, stocks of oil & gas exploration companies, fertiliser, and cement were the major laggards in the day's session, cumulatively shedding 551 points from the index, it added.

Overall trading volume increased to 1.17billion from Monday’s tally of 905.6million. Value of traded shares stood at Rs53.4billion. Shares of 482 companies were traded. Of these, 161 closed higher, 290 fell and 31 remained unchanged. Pakistan International Bulk Terminal was the volume leader with trading in 101.9million shares, gaining Rs0.56 to close at Rs17.75.