KARACHI: The stock market experienced a downturn on Wednesday as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) dropped by 100 points.
The index closed at 46,768 points compared to the previous day’s closing of 46,868 points, signaling a pullback after recent gains.
The stock market witnessed significant fluctuations during the trading session, oscillating between an intraday high of +438 points and a low of -141 points. Analysts at Arif Habib Limited attributed this volatility to profit booking across multiple sectors, coupled with investor reactions to corporate financial results.
HBL’s financial results announcement played a pivotal role in dampening investor sentiment. Anticipation of hefty dividends led to earlier buying activity; however, after the results were announced, HBL’s stock dropped to its near-term support level of PKR 130. Similarly, expectations surrounding PSO and ENGRO were postponed as their results were deferred until tomorrow, adding further uncertainty to the stock market.
Profit booking was prominently observed in the Cement, Steel, and Power sectors, reversing earlier gains. Among actively traded stocks, HUMNL led the volume charts with 77.8 million shares, followed by TELE with 76.1 million shares and DSL with 52.9 million shares.
Sector-wise, banks contributed significantly to the decline, dragging the index down by 145 points. Other sectors that impacted the stock market negatively included Exploration and Production (E&P) with a 28-point decline, Tobacco with 21 points, and Power with 20 points. In contrast, Autos and Cement contributed positively with gains of 28 points and 26 points, respectively.
Trading volumes in the stock market surged by 36% day-over-day, increasing from 514.2 million shares to 701.8 million shares. Similarly, the average traded value rose by 12%, reaching USD 179 million compared to the previous USD 159.2 million.
Stocks that contributed positively to the KSE-100 index included LUCK (+56 points), MTL (+29 points), PSO (+24 points), TRG (+19 points), and FFC (+17 points). Conversely, major laggards included HBL (-130 points), OGDC (-23 points), PAKT (-19 points), DGKC (-18 points), and HUBC (-16 points).
Despite increased trading activity, the stock market’s decline highlights cautious investor sentiment amid financial results announcements and profit-taking. Market participants now await further developments as key corporate results are unveiled.