PSX slips 348 points on profit-taking

Early rally fades despite Brent crude trading below $105 a barrel

KARACHI:

An early buying rally failed to hold at the Pakistan Stock Exchange (PSX) on Tuesday as cautious investors shifted to profit-taking, pulling the benchmark KSE-100 Index into the red after it traded higher in the morning amid buying across key sectors.

The index touched an intraday high of 166,070.48 before falling to a low of 164,773.67, eventually settling at 164,776.44, down 347.97 points, or 0.21%.

The market had opened on a positive note, with the KSE-100 Index rising 558.25 points, or 0.34%, to 165,682.66 in early trading. By midday, it was up 470.14 points, or 0.28%, at 165,594.55.

Buying interest during the session was observed in automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies. However, the initial momentum faded as investors turned cautious and booked profits, wiping out the index's early gains.

According to KTrade Securities, the KSE-100 opened on a positive note as Brent crude traded below $105 a barrel, lifting early sentiment and pushing the index over 700 points into the green. However, as the session progressed, profit-taking across the board erased gains despite oil prices hovering near $105 a barrel. Consequently, the index closed at 164,776, down 348 points (-0.21%) day-on-day.

Selling pressure was concentrated in commercial banks, technology, and oil and gas stocks, with United Bank Limited (UBL), Habib Bank Limited (HBL), Lucky Cement and Mari Energies weighing on the index. Fertilisers were the only sector to offer some support.

Going forward, KTrade noted that cautious trading was likely to persist as buyers remained selective, accumulating on dips rather than aggressively chasing prices. A sustained recovery would depend on improved participation and developments on the geopolitical front, particularly their implications for global oil prices and domestic investor sentiment, it added.

Overall, trading volume increased to 383.7 million shares versus Monday's total of 362.9 million. The value of traded shares stood at Rs13.1 billion.

LSE Financial Services was the volume leader with trading in 32.3 million shares, losing Rs0.16 to close at Rs1.03.