The Pakistan Stock market experienced a minor setback on Tuesday as the benchmark KSE-100 index fell by 160 points, closing at 33,476 points, down from the previous day’s 33,636 points. This decline comes despite the overall positive sentiment that has driven the market in recent weeks.
Analysts at Arif Habib Limited reported that the market traded in a narrow range, fluctuating between a high of +235 points and a low of -228 points. Profit-taking was the primary factor behind the dip, as investors capitalized on gains from the market’s recent upward trend. The KSE-100 index had previously seen a gradual rise, gaining a cumulative 5,200 points over the past few weeks, reflecting the market’s overall positive momentum.
Despite the drop, analysts believe the sentiment remains optimistic. Investors are engaging in profit booking and rebalancing their portfolios by shifting positions from one sector to another. However, this shifting caused selling activity across the board, with particular pressure seen in the cement sector, which sustained the largest hit of the day.
The total trading volume was significantly lower compared to the previous session, with 242.9 million shares traded, down 38 percent from the 392.1 million shares traded the previous day. The average traded value also declined by 12 percent, settling at $56.9 million compared to $64.7 million the day before.
The cement sector dominated the trading volume, leading with 31.9 million shares traded. It was followed by the engineering sector, which recorded 26.7 million shares, and banks, with 24.6 million shares. Among individual stocks, UNITY Foods topped the volume chart, trading 21.5 million shares, followed by TRG Pakistan with 15.6 million shares and Pak Elektron Limited (PAEL) with 13.3 million shares.
The oil and gas marketing companies (O&GMCs), cement, power, exploration and production (E&P), and pharmaceuticals sectors contributed negatively to the day’s performance, collectively shaving off points from the index. Key sectors that dragged the index included O&GMCs (-31 points), cement (-29 points), power (-21 points), E&P (-18 points), and pharmaceuticals (-17 points).
Among the top contributors to the index’s decline were Pakistan Petroleum Limited (PPL) with -35 points, Pakistan State Oil (PSO) with -22 points, Engro Corporation (ENGRO) with -20 points, Hub Power Company (HUBC) with -20 points, and The Searle Company (SEARL) with -15 points.
On the other hand, a few stocks made positive contributions. Habib Bank Limited (HBL) added 20 points to the index, Fauji Fertilizer Company (FFC) contributed 14 points, and Pakistan Oilfields (POL), Mari Petroleum (MARI), and Colgate-Palmolive Pakistan (COLG) each added 11 points.
Despite the dip, market experts maintain that the overall trend remains positive, as investors anticipate further opportunities once the consolidation phase stabilizes.