Karachi, October 18, 2024 – The Pakistan Stock Exchange (PSX) saw the KSE-100 index fall by 335 points on Friday, continuing its downward trend as investors engaged in profit-taking. The benchmark KSE-100 index closed at 85,250 points, down from the previous day’s close of 85,585 points.
According to analysts at Topline Securities Limited, the KSE-100 index experienced consistent pressure throughout the session. The KSE-100 made an intraday low of 464 points before slightly recovering, ending the day with a decline of 335 points or 0.39%. Investors continued to book profits after recent upward movements, leading to broader market losses.
The Energy and Exploration (E&P) and Fertilizer sectors were the major contributors to the market’s decline, losing 225 and 206 points respectively. These sectors were affected by lower-than-expected corporate earnings, which dampened investor sentiment. Both sectors had seen substantial gains in recent weeks, prompting investors to take advantage of the elevated prices and lock in profits.
In the broader market, profit-taking was seen across several other sectors as well, as investors opted for caution following recent rallies. Analysts noted that the selling pressure was widespread, with market participants seeking to capitalize on gains before the release of more corporate earnings and economic updates.
Pakistan Refinery Limited (PRL) emerged as the volume leader on Friday, with 28 million shares traded during the session. PRL’s high trading activity came after the company issued a clarification regarding news reports. In a statement, PRL clarified that a news clipping dated October 17, 2024, did not originate from the company, nor had it entered into any agreement with a Chinese company. The clarification alleviated some concerns among investors but kept the stock highly active in the market.
Despite the overall decline, the KSE-100 index has experienced notable gains in recent weeks, which has fueled the current phase of profit-taking. Market analysts expect that the KSE-100 index could continue to experience volatility in the coming sessions as corporate earnings reports and macroeconomic data come into play.
While the market experienced a drop today, analysts remain cautiously optimistic about the long-term outlook, citing the potential for a rebound once corporate earnings stabilize and positive economic indicators emerge. However, they warned that the market might continue to witness profit-taking in the short term, especially in sectors that have seen significant price increases.
Investors will be keeping a close watch on upcoming developments, both in corporate results and macroeconomic factors, to guide their trading decisions in the days ahead.