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.
Following a strong buying spree from the previous seven sessions, the KSE-100 started trading on Wednesday positive, hitting an intra-day high of 91,872.63.
However, profit-taking in the latter hours pushed the index to negative territory and an intra-day low of 90,003.31.
At close, the benchmark index settled at 90,286.57, down by 577.52 points or 0.64%.
“The Pakistan Stock Exchange witnessed a turbulent trading session today [Wednesday], with the benchmark index oscillating between an impressive high of 1,008 points and a low of 860 points,” brokerage house Topline Securities said in its post-market report.
“This downturn was primarily driven by investors engaging in profit-taking, seizing the opportunity to lock in recent gains, thereby pushing the market into the red,” it added.
A key factor influencing today’s market behaviour was the heightened anticipation surrounding the T-bill auction, with investors closely monitoring its outcome. The auction is expected to provide further clarity on the direction of interest rates, which could play a crucial role in shaping near-term market dynamics, according to Topline.
On the performance front, key contributors to the index included SYS, PPL, GLAXO, EFERT, and ABL, which together added 264 points. However, the positive momentum was outweighed by the performance of major laggards such as FFC, NBP, HUBC, UBL, and HBL, which collectively shaved off 360 points from the index, the brokerage house reported.
In the last seven sessions, the KSE-100 had gained more than 5,600 points amid positive indicators.
Bullish momentum had 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.
Meanwhile, the Pakistani rupee remained largely stable against the US dollar, depreciating 0.02% in the inter-bank market on Wednesday. At close, the currency settled at 277.79, a loss of Re0.05 against the greenback.
Volume on the all-share index increased to 614.56 million from 602.81 million on Tuesday.
However, the value of shares declined to Rs27.34 billion from Rs28.20 billion in the previous session.
Silk Bank Ltd was the volume leader with 68.50 million shares, followed by The Searle Company with 26.74 million shares, and WorldCall Telecom with 22.73 million shares.
Shares of 446 companies were traded on Wednesday, of which 158 registered an increase, 235 recorded a fall, while 53 remained unchanged.