Stocks down 578 points amid profit-taking in overbought market

KARACHI: Pakistan stocks closed lower by 578 points on Wednesday after a positive streak for a few days, as investors opted for profit-taking in an overbought market.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index decreased by 577.52 points or 0.64 per cent to 90,286.57 points against 90,864.09 points recorded in the last session. The highest index of the day remained at 91,872.63 points while the lowest level was recorded at 90,003.31 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed under pressure on institutional profit-taking in overbought scrips.”

He said that foreign outflows, rising industrial gas tariff, rupee instability and concerns for the outcome of Saudi investors seeking guarantees over stable government policies for a $2 billion investment played a catalyst role in the bearish close.

The KSE-30 index decreased by 212.33 points or 0.74 per cent to 28,343.1 points against 28,555.42 points.

Traded shares increased by 12 million shares to 614.564 million shares from 602.81 million shares. The trading value dropped to Rs27.341 billion from Rs28.203 billion. Market capital narrowed to Rs11.695 trillion against Rs11.764 trillion. Of the 446 companies active in the session, 158 closed in green, 235 in red and 53 remained unchanged.

Maaz Mulla, analyst at Topline Securities said the PSX witnessed a turbulent trading session, with the benchmark index fluctuating between an impressive high of 1,008 points and a low of 860 points. Ultimately, the index closed at 90,286 points, reflecting a decline of 577 points, or 0.64 per cent. “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,” he said.

He said that a key factor influencing 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.

On the performance front, key contributors to the index included SYS, PPL, GLAXO, EFERT and ABL, which together added 264 points. However, this 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 highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs154.84 to Rs7,750 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs74.92 to Rs824.13 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs192.49 to Rs18,987.51 per share; Ismail Industries Limited followed it, which closed lower by Rs117.98 to Rs1,582.01 per share.

Silk Bank Ltd remained the volume leader with 68.504 million shares, which closed higher by 10 paisas to Rs1.18 per share. The Searle Company followed it with 26.744 million shares, which closed lower by Rs3.93 to Rs65.33 per share.

Other significant turnover stocks included WorldCall Telecom, Fauji Foods Ltd, Hum Network, Sui South Gas, PIA Holding Company, Pak Petroleum XD, Waves Corp Ltd. and BO Punjab.

In the futures market, 308 companies recorded trading, of which 103 increased, 200 decreased and 5 remained unchanged.