A day after hitting its all-time high, profit-taking was witnessed at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index dropped below the 113,000 level amid a decline of over 1,200 points during intra-day trading on Friday.
At 12pm, the benchmark index was at 112,955.04, a decrease of 1,225.46 points or 1.07%.
Selling was witnessed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refineries. Index-heavy stocks including NRL, PRL, HUBCO, PSO, SSGC, PPL, ENGRO, HBL, MCB, MEBL and NBP traded in the red.
“There is no letting up in the investor optimism, and we see no major risks on the politics or the economy fronts,” said Intermarket Securities Limited.
“Still we think that investors should book profits in stocks which have run up the strongest, mostly in the large-cap space,” it added.
On Thursday, the stock market achieved another historic milestone and hit a record high with impressive gains and increased trading volumes on the back of strong interest of local investors.
The interest comes amid expectation of further interest rate cuts after declining inflation and improving macroeconomic indicators.
The benchmark KSE-100 Index closed at its highest level of 114,180.51 points, with a gain of 3,370.29, which was the third-highest ever single day increase in history in terms of points.
Internationally, Asian shares fell on Friday as a strong dollar kept risk sentiment fragile, while longer-dated Treasury yields are heading for their biggest weekly rise this year as expectations for deep US rate cuts in 2025 recede.
A top-level meeting in Beijing pledged to increase debt and boost consumption but failed to boost Chinese equity markets.
Policymakers are girding for more trade tensions with the US as Donald Trump’s return to power approaches. It has been a week of rate cuts from Switzerland, Canada and the European Central Bank, which had rate differentials working in the favour of the US dollar.
The other main point of the week has been the rise in long-term treasury yields.
Markets are still confident of a cut from the Federal Reserve next week but suspect it will sound cautious about next year.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.5% in Friday morning trade.
This is an intra-day update
Source: Brecorder
