Pakistan Stock Exchange reverses initial gains as aggressive selling weighs on major index-heavy stocks, while trading activity remains strong.
KARACHI: The Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Wednesday as early optimism over the government’s plan to address a portion of the gas-sector circular debt was quickly overshadowed by aggressive selling pressure.
The benchmark KSE-100 Index initially gained momentum after reports that the government plans to tackle Rs1.49 trillion of the Rs3.6 trillion gas-sector circular debt. The proposed settlement is expected to be partly financed through higher dividends from state-owned exploration and production (E&P) companies and increased Petroleum Development Levy (PDL) collections.
The positive news pushed the KSE-100 Index to an intraday high of 986 points. However, the initial gains failed to hold as selling pressure intensified across major sectors.
The benchmark subsequently plunged to an intraday low of 1,317 points before recovering slightly towards the close. The KSE-100 Index ultimately settled at 176,846 points, down 1,109 points, or 0.62%, from the previous session.
The session reflected a sharp shift in investor sentiment, with bears taking control after the market failed to sustain its early advance.
On the positive side, Pakistan Petroleum Limited (PPL), Pakistan Telecommunication Company Limited (PTC), DG Khan Cement Company Limited (DGKC), International Steels Limited (ISL) and Fatima Fertilizer Company Limited (FATIMA) emerged as the major gainers.
The five stocks collectively contributed around 176 points to the KSE-100 Index, providing some support to the benchmark during the session.
However, gains were more than offset by losses in major index-heavy stocks. United Bank Limited (UBL), Engro Holdings Limited (ENGROH), Habib Bank Limited (HBL), Fauji Fertilizer Company (FFC) and Attock Refinery Limited (ATRL) were the biggest laggards.
The five stocks collectively dragged the benchmark down by approximately 641 points.
Market participation remained active despite the decline, with total traded volume reaching 787 million shares. The total traded value stood at approximately Rs39.5 billion.
Cnergyico PK Limited (CNERGY) remained the volume leader, with around 217 million shares changing hands during the session.
The market is likely to remain sensitive to developments surrounding the government’s gas-sector circular debt settlement plan, corporate earnings and broader macroeconomic conditions in the coming sessions.