Karachi, October 9, 2024 – The Pakistan Stock Exchange (PSX) experienced a turbulent trading session on Wednesday, with the KSE-100 index crossing the significant 86,000-point mark in early trade but closing the day with a modest gain of just 5 points.
The benchmark index, which opened on a strong note, surged to a high of 86,451 points before succumbing to profit-taking pressure and settling at 85,669, slightly up from the previous day’s close of 85,664 points.
Despite the minimal gain, the session was marked by high volatility, as the index dipped to an intraday low of 85,444 points before recovering marginally. The market’s inability to hold above the psychological barrier of 86,000 points reflected a combination of investor caution and profit-taking, which prevented a sustained rally.
Analysts at Topline Securities Limited commented on the session’s erratic behavior, noting that although the KSE-100 briefly soared, local selling pressure coupled with fluctuations in global markets capped further gains. “Profit-taking emerged as the index crossed 86,000, reflecting the market’s struggle to maintain these elevated levels,” one analyst remarked. “The index was largely supported by the buying activity of local institutional investors.”
Key stocks that buoyed the index included MCB Bank, Lucky Cement (LCI), Bank Al-Habib (BAHL), Hub Power Company (HUBC), and Habib Bank Limited (HBL). These major contributors collectively added 292 points to the KSE-100. However, the upward momentum was offset by declines in Fauji Fertilizer Company (FFC), Engro Fertilizers (EFERT), and Pakistan Oilfields Limited (POL), which collectively shaved off 215 points from the index, dampening broader gains.
Trading volumes were notably robust, with 592 million shares traded, amounting to a value of Rs 31 billion. K-Electric Limited (KEL) emerged as the most actively traded stock, with an impressive 55 million shares changing hands during the session, reflecting strong investor interest in the utility sector amid ongoing discussions around energy reforms.
The session highlighted the market’s fragility as it struggles to sustain gains amid global economic uncertainties and domestic challenges. While local institutions continued to offer support, analysts caution that the KSE-100 index may remain volatile in the short term as profit-taking remains a key driver, especially after major rallies.
Looking ahead, market participants are expected to focus on upcoming corporate earnings reports and broader economic indicators to gauge the direction of the market. For now, the index remains poised around the 86,000-point mark, with further movements likely influenced by both external and internal factors.