KARACHI:
The record-eclipsing rally at the Pakistan Stock Exchange (PSX) fizzled out on Tuesday as investors took a breather and booked profits in a large number of equities at higher valuations. The benchmark KSE-100 index shed 562.67 points, or 0.41%, and settled at 135,939.87 at the close of trading.
Earlier at the start of the session, the market shot up rapidly and after continuous fluctuations touched the day’s peak at 137,748 before midday. Afterwards, the index began descending gradually, reaching its intra-day low at 135,826 towards the close of trading.
Topline Securities, in its report, said that the local bourse kicked off trading on a high note, continuing the previous day’s upward momentum as banking heavyweights led the charge. “Optimism fueled early gains, propelling the benchmark index to the intra-day high of 1,245 points,” it said.
However, the rally ran out of steam in the latter half as investors shifted gears to book profits, prompting a wave of selling across the board. The index saw a wide swing, hitting the low of 676 points before closing at 135,940, down 563 points, or 0.41%, it said.
Read: In fresh peak, PSX rises past 136,000 mark
“The session mirrored a classic tug of war between bullish enthusiasm and prudent gain-taking,” Topline remarked.
On the leaders’ board, UBL, Fauji Fertiliser Company (FFC), ABL, Pakistan Services and Engro Holdings stood out as top performers, collectively adding 564 points to the index. Meanwhile, pressure from Meezan Bank, Pakistan Petroleum Limited (PPL), Hubco and OGDCL trimmed gains, dragging the index down by 350 points.
Investor participation remained vibrant, with volumes standing at 879 million shares and traded value reaching Rs38.6 billion. The Bank of Punjab led the volumes chart as it recorded trading in 61.3 million shares – a testament to the market’s underlying liquidity and momentum, Topline added.
According to Arif Habib Limited (AHL), the PSX saw some retreat from Monday’s aggressive move higher with the day’s low at 135.8k.
On the KSE-100, 27 shares rose while 72 fell, with UBL (+2.7%), FFC (+0.73%) and ABL (+10%) contributing the most to index gains. On the contrary, Meezan Bank (-2.62%), PPL (-1.95%) and Hubco (-1.49%) were the biggest drags, it said.
In a positive report, AHL pointed out that the finance ministry had stated that they were close to finalising a trade deal for preferential tariff access with the US.
“For Wednesday’s session, we are anticipating demand to be found in the first offered support zone between 135k and 135.8k,” it concluded.
