Karachi, October 24, 2023 – The KSE-100 index, the benchmark of the Pakistan Stock Exchange (PSX), experienced a decline of 43 points on Tuesday, driven by investors choosing to engage in profit-taking activities.
The index concluded the trading day at 51,028 points, down from the previous day’s closing figure of 51,071 points. Analysts at Topline Securities Limited noted that it was a day marked by investors opting to book profits shortly after the market opened. As a result, the KSE-100 index saw a decrease of 43 points, representing a 0.08% drop.
In the days leading up to this decline, there had been a noticeable rally in energy sector stocks, primarily due to anticipation of gas tariff hikes. However, on the previous day, the long-awaited gas tariff hike was officially announced. This development triggered a “Buy on Rumors; Sell on News” phenomenon, which resulted in selling activities related to energy sector stocks.
During the trading session, several sectors contributed negatively to the index. Exploration & Production (E&P), Fertilizer, and Cement sectors experienced losses, with companies like Pakistan Petroleum Limited (PPL), ENGRO, Oil and Gas Development Company Limited (OGDC), Fauji Fertilizer Company (FFC), and Cherat Cement Company (CHCC) collectively subtracting 146 points from the index.
In contrast, Hub Power Company (HUBC), Pakistan Stock Exchange Limited (PSEL), and Millat Tractors Limited (MTL) witnessed increased buying interest, adding a total of 74 points to the index on that particular day.
Trading activity at the PSX remained robust, with over 321 million shares changing hands, totaling a value of Rs 11 billion. Pak Arab Refinery Limited (PRL) led the volumes chart with approximately 33.5 million shares traded, indicating significant trading activity in the energy sector.
The decision by investors to engage in profit-taking activities on the back of the gas tariff hike announcement demonstrates the delicate balance between market sentiment and economic developments. The “Buy on Rumors; Sell on News” behavior reflects how investors often react to anticipated events, making timely decisions to maximize their returns.
While the KSE-100 index experienced a slight dip, the overall sentiment in the Pakistan Stock Exchange remains positive, with diverse sectors witnessing fluctuations in response to various market dynamics. As market participants continue to monitor economic developments, trading activities are expected to respond to a range of factors, including government policies, corporate results, and international economic events.