The Pakistan Stock Exchange (PSX) ended sharply lower on Tuesday as investors indulged in broad-based profit-taking, while weak sentiment across major Asian equity markets further dampened buying interest.
After opening on a firm note, the benchmark KSE-100 Index climbed as much as 375 points in early trading, touching an intraday high of 188,126.68. However, the gains proved short-lived as selling pressure intensified during the session, pulling the market into negative territory.
The benchmark Index settled at 186,255.55, down 1,199.14 points, or 0.64% from the previous close of 187,454.69.
Investor sentiment remained cautious as major Asian markets traded lower, with losses in Japan, South Korea and Taiwan prompting investors to trim positions across regional equities. The subdued global mood, coupled with domestic profit-taking, kept the PSX under pressure throughout the session.
Selling was witnessed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies, power generation and refinery, which weighed heavily on the benchmark Index.
The market touched an intraday low of 186,189.21 before recovering marginally by the close. Analysts said the decline was primarily driven by profit-taking after the market’s recent strong rally, while the negative trend across Asian equities encouraged investors to adopt a cautious stance.
Read: PSX opens week with 2,082-point surge
They added that the market’s medium-term outlook remains supported by improving macroeconomic indicators, although near-term movement is likely to remain driven by earnings expectations and institutional flows.
“Profit-taking by investors is weighing on the market, as the KSE-100 Index trades close to its all-time high,” AKD Securities Director of Research Mohammed Awais Ashraf told the Express Tribune.
However, a comfortable external account position due to positive current account surplus and successful re-entry into the international bond market, especially tapping the world’s second-largest market through issuance of Panda Bonds, along with a focus on structural reforms, would keep equities in the limelight, he said.
Additionally, declining fixed income yields would make the case stronger for equities that are trading at a cheaper forward P/E of 6.8x. We anticipate that sectors benefiting from monetary easing and structural reforms, particularly related to energy chain, would remain prominent, Ashraf predicted.
Overall trading volume increased to 984.8million shares against Monday’s close of 888.4million. The value of traded shares stood at Rs45.7billion. TPL REIT Fund I was the volume leader with trading in 75.8million shares, rising Rs0.12 to close at Rs10.63Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More