KSE-100 Index Witnesses a 1.73% Dip Due to Profit-Taking
Karobar
Investors engaged in profit-taking activities at the Pakistan Stock Exchange (PSX), causing the benchmark KSE-100 Index to undergo a significant correction and close 1.73% lower on Wednesday.
The KSE-100 commenced the session on a positive note, briefly surpassing the 67,000 mark for the first time in history. However, a selling spree erased the early gains, pushing the index below 66,000.
At the close, the benchmark settled at 65,280.16, marking a decrease of 1,146.62 points or 1.73%. Sectors contributing to the across-the-board selling included commercial banks, fertilizer, technology, communications, E&P, OMC, and cement.
On the preceding Tuesday, the KSE-100 rebounded, gaining 414 points ahead of the monetary policy announcement, settling at 66,426.78.
Mohammed Sohail, CEO of Topline Securities, termed Wednesday's selling a "much-needed correction," attributing it to highly leveraged positions and some selling by local institutions.
Sana Tawfik, an analyst at Arif Habib Limited (AHL), concurred, stating that the bearish sentiment was a result of profit-taking. She also mentioned that political volatility was contributing to negativity in the market.
In a Supreme Court development, a six-member bench suspended the verdict nullifying military trials of civilians involved in the May 9 riots. This decision added an element of uncertainty to the market.
Tawfik noted that most investors were anticipating a status quo in the policy rate, and the State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) decision to keep the key policy rate unchanged at 22% was in line with market expectations.
In a significant development, Aramco signed definitive agreements to acquire a 40% equity stake in Gas & Oil Pakistan Ltd. (“GO”).
Simultaneously, the Pakistani rupee experienced back-to-back gains against the US dollar, appreciating 0.06% in the inter-bank market and settling at 283.61 after an increase of Re0.17 against the greenback.
The all-share index saw a notable increase in volume to 1,358.4 million from 969.6 million in the previous session. The value of shares also rose to Rs37.6 billion from Rs26.9 billion in the preceding session.
WorldCall Telecom led in volume with 153.6 million shares, followed by B.O.Punjab with 106.2 million shares, and K-Electric Ltd. with 90 million shares.
