KARACHI – Pakistan Stock Market Faces Pressure as KSE-100 Index Drops Over 550 Points. The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Thursday as investors turned cautious ahead of futures contract rollover, resulting in significant profit-taking. The benchmark KSE-100 index, which showed early strength, lost momentum and closed the day with a substantial drop of over 550 points.
Early Gains Fade Amid Profit-Taking
The trading session began positively, with the KSE-100 index climbing to an intra-day high of 139,868 points shortly after opening. This early upward movement reflected strong investor confidence in major sectors. However, the rally could not hold, as selling pressure gradually took over by midday. The index eventually dipped to an intra-day low of 138,614 points.
As the session concluded, the KSE-100 index settled at 138,692.67, down by 561.69 points, marking a loss of 0.40% compared to the previous day’s close.
Investor Sentiment Shaken by Futures Rollover Concerns
Market analysts attributed the decline to investors choosing to book profits, particularly in heavyweight stocks, before the announcement of corporate earnings. The looming rollover week added to investor anxiety, prompting many to reduce their exposure in anticipation of potential volatility.
KTrade Securities reported in its daily market wrap that investor sentiment turned negative as traders cashed in on recent gains. The selling trend intensified due to concerns around futures rollover and the upcoming earnings season.
Highs and Lows: A Volatile Day on PSX
Topline Securities described Thursday’s trading session as volatile, with the KSE-100 index fluctuating between a high of 613 points and a low of 561 points. The brokerage noted that after an impressive performance in recent days, the stock market paused as traders adopted a cautious approach near the end of the rollover week.
The session was marked by a tug-of-war between optimism from past gains and nervousness over short-term risks. This led to mixed movements, with selective interest in certain stocks offering limited support.
Key Contributors to Market Movement
Major decliners for the day included:
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Fauji Fertiliser
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Habib Bank
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Engro Holdings
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Mari Petroleum
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Engro Fertilisers
These five stocks alone accounted for a loss of 506 points from the index. On the other hand, a few stocks offered some resistance against the downturn:
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Hub Power
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MCB Bank
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Systems Limited
Together, these gainers added back 204 points, softening the impact of the overall loss.
Trading Volume & Market Activity
The total volume of shares traded decreased slightly, reflecting cautious investor behavior. Around 648.8 million shares changed hands on Thursday, down from 656.6 million shares traded a day earlier. Meanwhile, the total value of traded shares stood at Rs28.1 billion.
Out of the 484 companies that were traded on the PSX:
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182 stocks closed higher
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273 stocks recorded losses
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29 remained unchanged
The Bank of Punjab led the volume charts with 113 million shares traded. The bank’s share price rose by Rs0.55, ending the day at Rs13.55.
Future Outlook: Choppy Sessions Expected
According to market experts, with the futures rollover week nearing its end and the earnings season around the corner, the stock market is likely to remain unstable in the short term. The mix of profit-taking and selective buying suggests that volatility may persist in upcoming sessions.
Topline Securities indicated that the market might witness further fluctuations driven by earnings expectations, futures rollover strategies, and global economic indicators. Investors are advised to remain cautious and focus on fundamentally strong stocks to navigate through this period.
Conclusion
Thursday’s downturn at the Pakistan Stock Exchange underscores the fragile nature of investor sentiment amid economic and financial uncertainties. While early signs were promising, the session ultimately ended in losses due to widespread profit-taking and rollover fears.
Market watchers believe that upcoming corporate earnings announcements and global market cues will play a crucial role in shaping the PSX’s direction in the coming weeks. In the meantime, staying informed and adopting a risk-managed investment strategy remains key for market participants.
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