Key Points
- Benchmark index drops 1,286 points or 0.78% amid persistent profit-taking
- Market sentiment turns negative after a strong rally earlier in the week
- Global equities rally on upbeat US earnings; oil prices ease
- Rupee posts marginal gain against the US dollar
KARACHI: Pakistan’s bourse on Friday ended the week under selling pressure and explicit profit-taking, undergoing a technical correction, and traders securing positions ahead of the rollover week.
According to the PSX data portal, the Pakistan Stock Exchange (PSX) ended the week in negative territory as selling pressure dominated the session, with investors engaging in profit-taking following earlier gains. The benchmark KSE-100 Index declined by 1,286.28 points, or 0.78%, to close at 163,304.13.
Negative sentiments prevailed throughout the trading session, dragging the index to an intraday low of 163,041.97 before a mild recovery near the close. The broader market remained under pressure, as investors opted to secure profits after the week’s earlier rally driven by expectations of positive quarterly results.
On Thursday, during the preceding session, the bourse had already witnessed a sharp downturn, with the benchmark index falling by 1,962.87 points, or 1.18%, to settle at 164,590.41 points, slipping below the key 165,000-point threshold amid heavy selling in key sectors including banks and energy.
Analysts told Business Recorder that investors remained cautious due to heightened volatility during the futures rollover period and mixed earnings from leading banks. They noted that sentiment turned fragile after sustained gains in earlier sessions, while macroeconomic uncertainties and weak sectoral outlooks added to the selling pressure.
Global and regional context
In regional markets, Asian equities rallied on Friday as strong corporate earnings from Wall Street and easing geopolitical concerns lifted investor sentiment. Reuters reported that signs of a thaw in US-China relations helped boost risk appetite, with MSCI’s Asia-Pacific index (excluding Japan) up 0.5% in early trade.
Bloomberg noted that Japan’s Nikkei surged 1.2% as traders anticipated a stimulus announcement from the newly appointed prime minister. Meanwhile, Intel’s upbeat quarterly results added momentum to a global equities rebound.
Oil prices, however, eased following the fresh US sanctions on Russian suppliers, tempering the energy sector’s optimism across emerging markets.
Currency movement
In the interbank market, the Pakistani rupee posted a marginal gain against the US dollar, settling at 281.02, up Rs 0.01, according to data from the State Bank of Pakistan (SBP). Dealers attributed the movement to subdued demand for dollars and steady inflows from remittances.
Outlook
Analysts expect volatility to continue in the next week as rollover activity winds down and investors react to incoming corporate earnings. They added that stability in the exchange rate and external accounts will be key factors for restoring investor confidence in the short term.
