Karachi, September 23, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) faced a notable dip on Monday as investors opted for profit-taking, resulting in a decline of 224 points.
The index closed at 81,850 points, down from the record-high closing of 82,074 points on Friday, reflecting a 0.27% decrease.
The decline in the market was primarily attributed to profit-taking in key sectors. According to analysts at Topline Securities Limited, the downward trend was led by prominent stocks such as Hub Power Company Limited (HUBC), Mari Petroleum Company Limited (MARI), Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDC), and Bank Alfalah Limited (BAFL). These five stocks collectively accounted for a 634-point drop in the overall index, with HUBC and OGDC being the major contributors to the decline.
Despite the drop, trading activity remained robust. A total of 400 million shares were traded during the day, with a cumulative value of Rs 18 billion. Among the most actively traded stocks was Pace Pakistan Limited (PACE), which witnessed an exchange of 30 million shares, making it the top performer in terms of volume.
Market experts observed that the recent high levels of the index prompted some investors to book profits, a common practice after a strong rally. The KSE-100 index had been on an upward trajectory in recent weeks, hitting a historic high of 82,074 points last Friday. This rally was driven by positive macroeconomic indicators, including improvements in foreign exchange reserves and optimism regarding Pakistan’s economic outlook.
However, analysts also pointed out that the drop in the index was not a cause for concern but rather a normal market correction after sustained gains. “Profit-taking was expected after the index touched a record high last week. The fundamentals of the market remain strong, and we expect investor sentiment to improve once again in the coming days,” said a senior analyst at Arif Habib Limited.
Sector-wise, the oil and gas sector bore the brunt of the profit-taking, with energy stocks leading the decline. The banking and cement sectors also saw minor corrections. Investors are now eyeing the upcoming monetary policy announcement, which could influence market direction in the near term.
Overall, while Monday’s session saw a dip in the index, the market’s long-term prospects remain optimistic as investors continue to monitor economic indicators and corporate earnings reports.
