KEY POINTS
- Benchmark KSE-100 index plunges 1,241.66 points or 0.75 pc to close at 164,444.72
- Market breadth negative with 269 scrips down against 174 gainers
- Heavy volumes seen in K-Electric, WorldCall, Telecard amid broad sell-off
- Analysts attribute correction to profit-taking and macroeconomic caution
ISLAMABAD: A technical correction led traders to go for profit-taking, leaving Pakistan’s bourse in the red on Thursday despite positive news on the economic front.
According to the Pakistan Stock Exchange (PSX) data portal, the trading session opened under pressure, and the benchmark KSE-100 index lost nearly a percentage point.
The market Summary reflected that the index closed at 164,444.72, shedding 1,241.66 points (-0.75 %). Turnover surged, with over 3.08 billion shares traded and a total value crossing PKR 50.6 billion, reflecting strong selling momentum.
An extraordinary number of shares changing hands revealed that the market was suspended in a divergent pull. An oversold market prompted a technical correction, while positive indicators, led by the staff-level agreement with the International Monetary Fund, were there to support a bullish momentum.
Meanwhile, broader indices such as the All-Share and KSE-30 also posted declines, signalling weakness beyond just the heavyweight counters.
The index traded between an intraday high of 166,864.89 and a low of 164,261.65, reflecting a volatile session that eventually succumbed to selling pressure.
The All-Share Index also dropped 522.59 points to 100,263.21, while the KSE-30 and KMI-30 indices declined 0.90 per cent and 0.94 per cent, respectively. Market breadth remained negative as 269 scrips closed lower, 174 advanced, and 41 remained unchanged.
Top traded names drove the slide
Volume leaders included K-Electric Limited, which led with 1.02 billion shares traded, followed by WorldCall Telecom with 953.7 million shares, and Telecard Limited with 99.9 million shares, according to PSX data.
Among the blue-chip counters, OGDC, PSO, and Hub Power faced profit-taking, while selective buying was observed in Meezan Bank and Bank Al-Habib, making a part of the index’s decline.
Drivers and underlying sentiment
Market participants attributed the day’s weakness to profit-taking following recent gains driven by optimism over Pakistan’s ongoing engagements with the International Monetary Fund (IMF), the World Bank and key financial institutions on the sidelines of the IMF and World Bank Annual meetings.
Analysts quoted by local media said that despite progress on fiscal commitments, investor sentiment remains fragile amid persistent macroeconomic challenges, including inflationary pressures, currency weakness, and policy uncertainty.
“The market is consolidating after an extended rally; investors are locking in profits before clarity emerges on the next monetary policy cycle,” a trader was quoted as saying.
Regional and international linkages
Regional equities traded mixed on Thursday, with Mumbai’s Sensex and Dhaka’s DSE Broad Index inching higher, while Hong Kong’s Hang Seng and Shanghai Composite posted mild losses.
Gulf markets, including Dubai and Abu Dhabi, remained largely range-bound, reflecting cautious global sentiment ahead of key U.S. economic data later this week.
European and U.S. futures also showed little change, according to Reuters, as investors awaited policy direction from the Federal Reserve and the European Central Bank, which could shape near-term risk appetite across emerging markets.
Outlook
Analysts expect the market to remain range-bound in the near term as investors await corporate earnings announcements and policy direction from the central bank. Support for the KSE-100 is seen near 164,000 points, while resistance is expected around 166,800.
Sustained foreign inflows and further clarity on IMF-related reforms could provide fresh momentum in the coming sessions.
