KSE-100 takes a turn, plummets after initial surge

Profit-taking at the Pakistan Stock Exchange (PSX) erased all intra-day gains and threw stocks in the red after the benchmark KSE-100 Index scaled new peaks on Wednesday.

At 2:55pm, the benchmark index had fallen to 90,182.16, an overall decrease of 681.93 points or 0.75%. Earlier, the KSE-100 hit an intra-day high of 91,872.63 after which profit-taking began.

Earlier, buying was witnessed in key sectors including automobile assemblers, cement, chemical, commercial banks, fertilizer, power generation, oil and gas exploration companies and OMCs. Index-heavy stocks including HUBCO, OGDC, PPL, MCB, HBL and MEBL traded in the green.

Bullish momentum has persisted at the PSX in recent weeks, on account of strong corporate results, which experts say have bolstered investor confidence.

Moreover, anticipation of a significant policy rate cut by Pakistan’s central bank’s upcoming Monetary Policy Committee (MPC), scheduled to be held next week, is also fuelling the ongoing rally.

On Tuesday, PSX maintained its positive trajectory and hit new all-time highs on the back of investors’ strong interest and healthy buying. The benchmark KSE-100 Index surged by 668.57 points or 0.74% and closed at its highest-ever level of 90,864.09 points.

However, many said a correction was long over-due as the KSE-100 scaled new peaks almost each session.

Globally, Asian shares eased on Wednesday on the back of weakness in China, as investors prepare for a tightly contested US election that could have huge ramifications for the world’s second-largest economy, even as Beijing tries to shore up growth.

Gold rose to an all-time high as jitters over the close US presidential race supported the yellow metal, while bitcoin also flirted with a record peak as markets weigh the prospect of a victory by Republican candidate Donald Trump.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.22% in early trade, tracking a decline in Chinese assets.

Bitcoin stood just a whisker away from its peak of $73,803.25 and last bought $72,322.08, on track to gain 13% for the month.

The world’s largest cryptocurrency has been bolstered by the growing possibility of Trump’s return to the White House, as he is seen taking a more favourable stance towards digital assets.

This is an intra-day update