Profit Taking Dips KSE-100 Index Over 900 Points: PSX Faces Volatility in Mixed Market Trends”

In Monday’s trading session, investors engaged in profit taking activities at the Pakistan Stock Exchange (PSX), causing the benchmark KSE-100 Index to witness a substantial decline of over 900 points, settling near the 65,000 level.

The KSE-100 concluded the day at 65,204.67, experiencing a notable fall of 925.35 points or 1.40%.

The market exhibited a mixed trend, with certain index-heavy sectors—such as cement, chemical, commercial banks, fertilizer, oil and gas exploration companies, and OMCs—registering losses, while the automobile assemblers and refinery sectors traded positively.

During the preceding week, the PSX had shown sideways movement as investors opted to capitalize on available margins, resulting in the KSE-100 index closing at 66,130.02 points, down by 93.61 points on a week-on-week basis.

Market experts attributed the Monday negativity to profit-taking by investors, emphasizing that the recent market rally had been a unidirectional movement, prompting investors to seize the opportunity for profit.

An analyst commented to Business Recorder, stating, “Other than that, there are no significant factors that dampen market sentiment. The current account posted a surplus, while internationally, oil prices, despite the recent increase, remain low.”

Notably, after four consecutive months of deficits, Pakistan’s current account exhibited a surplus of $9 million in November 2023, a noteworthy contrast to the $157 million deficit recorded in the same month of the previous year, as reported by the State Bank of Pakistan (SBP) on Monday.

Addressing the specific dynamics of the trading day, Topline Securities, a brokerage house, highlighted the evident profit-taking trend, noting fluctuations within a range of 1,521 points during the trading day. The intraday high reached 66,586 points, while the low touched 65,064 points.

Negative contributions during trading hours came from stocks in the E&P, fertilizer, and banking sectors, with companies like PPL, MEBL, ENGRO, OGDC, and FFC collectively incurring a loss of 281 points. Conversely, stocks such as KEL, PTC, and PSEL contributed to a combined gain of 80 points.

The trading session demonstrated significant activity, with a total of 1.8 billion shares being exchanged on the stock exchange, amounting to a cumulative value of Rs24.5 billion. WTL stood out on the volumes chart, leading with the trading of over 444 million shares.