After a record-breaking rally, profit-taking reversed early gains, with the benchmark KSE-100 Index losing over 400 points during intra-day trading.
Profit-taking reverses early gains, KSE-100 sheds over 400 points
According to the PSX website, the market opened with an upward trajectory and reached the highest level of 96,711.33 points in the early hours. However, the upward momentum faltered as investors capitalized on available margins, leading to a decline.
After noon, the market started plummeting, and at 01:45 pm, the KSE-100 was hovering at 95,449.29 points, down by 359.46 points or 0.37% from the previous close of 95856.66 points.
Earlier, a widespread buying spree was witnessed in key sectors including oil and gas exploration companies (E&P), oil and gas marketing companies (OMCs), sugar and allied industries, technology and communication, and banks.
On Tuesday, the benchmark KSE-100 Index closed above the 95,000 mark for the first time, settling at 95,856.67, a gain of 861 points or 0.91%.
Market analysts attribute the positive momentum and bolstered investor confidence to growing economic optimism and easing inflationary pressure which is anticipated to fall below 5% for November.
In a related development, Pakistan’s current account recorded a surplus of $349 million in October 2024, marking the third consecutive month in positive territory, according to data released by the State Bank of Pakistan (SBP).
Cumulatively, the current account surplus for the first four months of FY25 (July-October) stood at $218 million, an improvement from the $1.53 billion deficit in the same period last year.
Net Foreign Direct Investment (FDI) in Pakistan grew by 32.3% during the first four months of the current fiscal year (FY25), reaching $904.3 million.
The federal government has decided to approach the Supreme Court to vacate a stay order issued by the Islamabad High Court (IHC). The order temporarily halted the collection of a 15% additional income tax from banks on excessive lending to the finance ministry.
The PSX has been on a winning streak for some weeks mainly supported by increased investor confidence and improved economic indicators. Last week, the stock market gained 1.6% WoW, closing at a record high of 94,763 points.
According to a recent report by Bloomberg, Pakistan’s stocks are expected to advance by more than a quarter by the end of next year 2025 as the nation’s economy shows improvement under a loan program with the IMF and the currency stabilizes.
The benchmark KSE-100 Index is forecast to increase to 127,000 points by December 2025, or a 34% rise, from the 94,704 points it closed last Friday, according to Topline Securities Ltd. in a report announced on November 16, Arif Habib Ltd. targets the index to reach 120,000 points, a gain of 27%.
“The stage is set for a potential market re-rating with declining interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.
