The Pakistan Stock Exchange (PSX) witnessed a volatile session on Wednesday as the benchmark KSE-100 index unable to sustain its record high level of above 61,000 points and ended in the red zone.
Around 11 am, the index had hit an all-time high of 61,555.83 points, gaining over 800 points, but profit-taking by investors dragged it down to close at 60,502 points, down by 228 points or 0.38 percent from previous close of 60,730.26 points.
Earlier, across-the-board buying was witnessed with index-heavy sectors including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and the refinery sector trading in the green.
The recent rally in stock market is fueled by the staff-level agreement between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-By Arrangement (SBA), which is expected to be approved by the IMF board in December. The agreement would also unlock funds from other multilateral and bilateral partners.
Analysts said that low valuations, foreign buying, economic stability, currency stability and declining interest rates were also supporting factors for the bullish sentiment.
However, some investors opted to book their gains after the index crossed the 61,000 mark, leading to a correction in the market. Most of the sectors traded in the negative territory, with automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and the refinery sector among the major losers.
The PSX has been one of the best performing markets in the world this year, posting a growth of over 50 percent. However, some experts have cautioned that the market may face some challenges in the coming months due to political uncertainty, rising inflation, fiscal pressures and external vulnerabilities. They advised investors to adopt a cautious approach and focus on quality stocks with strong fundamentals.