Karachi, January 16, 2024 – Pakistan stocks experienced a significant decline on Tuesday as profit-taking activities led to a 532-point drop in the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX).
The market concluded the day at 63,737 points, down from the previous day’s closing figure of 64,269 points.
Analysts at Topline Securities Limited noted that Tuesday’s trading session was characterized by profit-taking, with subdued volumes and fluctuations in the KSE-100 index. The index hit an intraday low of -871.43 points before settling at 63,737.46, marking a decrease of 531.91 points.
The negative sentiment in the market emerged after the Delisting committee set the price of Pakistan Stock Exchange’s (PSMC) shares at Rs609, disappointing market expectations that had anticipated a higher valuation. Throughout the day, PSMC faced constraints with only 11,989 shares traded, leading to a lower lock.
The Exploration and Production (E&P) sector witnessed profit booking, resulting in declines for major players such as Pakistan Petroleum Limited (PPL) with a decrease of 4.14% and Oil & Gas Development Company Limited (OGDC) with a 2.97% drop. These losses reversed the gains made in the preceding week.
The overall trading session saw the exchange of 234 million shares, with notable trading volumes in K-Electric Limited (KEL) and Pakistan Telecommunication Company Limited (PTC). KEL recorded robust trading volumes exceeding 50 million shares, while PTC transactions exceeded 48 million shares.
Market analysts attribute the profit-taking activities to a combination of factors, including the disappointment in PSMC’s valuation and concerns in the E&P sector. Despite these setbacks, trading volumes in certain stocks, such as KEL and PTC, indicate continued investor interest and activity in specific sectors.
Investors are closely monitoring market dynamics and sectoral performances as they navigate through potential uncertainties. The profit-taking session reflects a cautious approach among market participants, adjusting their positions in response to recent developments and anticipating future market trends.
As the market continues to respond to corporate announcements and economic indicators, the upcoming trading sessions will be crucial in determining the overall direction and sentiment in Pakistan’s stock market. Analysts advise investors to stay vigilant and make informed decisions amid evolving market conditions.
