The Pakistan Stock Exchange (PSX) saw its bullish momentum pause on Tuesday as the benchmark KSE-100 Index fell over 1,000 points amidst heavy profit-taking, ending its record-breaking streak.
Trading Overview
The session began on a high note, with the KSE-100 hitting an intra-day peak of 111,759.58, marking a gain of over 1,700 points during the early hours of trading. However, the buying frenzy subsided as the day progressed, with the index plummeting to an intra-day low of 107,711.40 by 2:40 PM. The benchmark index ultimately closed at 108,896.65, down 1,073.73 points (0.98% decrease).
While early optimism drove activity in key sectors such as power generation, refineries, oil and gas exploration companies, OMCs, fertilizers, automobile assemblers, and cement, selling pressure spread across the board as investors looked to secure profits after several days
Market Sentiment
Despite the day’s decline, the overall sentiment remained buoyed by encouraging macroeconomic developments:
November’s inflation rate of 4.9% has fueled speculation of further interest rate cuts by the State Bank of Pakistan, a sentiment that continues to support market confidence.
Market analysts anticipated a correction, given the historic highs reached in recent days. On Monday, the KSE-100 index had closed at 109,970.38, reflecting a gain of 916.43 points (0.84%). The rapid ascent to all-time highs created conditions ripe for a pullback.
While Tuesday’s decline signals a breather in the market’s momentum, analysts believe the broader uptrend is intact. The PSX remains supported by improving economic fundamentals and a conducive monetary environment. However, volatility is expected as investors reassess positions amid record valuations.
