After a strong start led by buying momentum, profit-taking was observed at the Pakistan Stock Exchange (PSX), causing the benchmark KSE-100 Index to lose over 200 points during intra-day trading on Wednesday.
The benchmark index began the trading session on a positive note, climbing to an intra-day high of 96,711 during early hours.
However, the market was unable to sustain the momentum as investors opted to book profit on available margins.
At 1pm, the benchmark index was hovering at 95,639.46, a decrease of 217.20 points or 0.23%.
However, the overall market sentiment remains optimistic, which comes on the back of positive macroeconomic indicators including a decline in inflation rates. This has sparked hopes of a further policy rate cut.
As per Topline Securities, the slowing inflationary trend in Pakistan is likely to continue as the CPI-based figure is expected to fall below 5% in November, marking a 78-month low.
Buying was witnessed in key sectors including cement, commercial banks, fertilizer, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks including KE, PSO, SHEL, OGDC, PPL, MARI, MEBL, NBP and HBL traded in the green.
On Tuesday, stocks rose again as the market extended a buying spree that has pushed the benchmark KSE-100 to a series of record highs. The index closed above 95,000 for the first time to settle at 95,856.67, up by 861 points or 0.91%.
Globally, Asian shares were cautious on Wednesday as investors looked ahead to earnings results from AI darling Nvidia where the risk of disappointment is high, while the dollar gave back a little of its recent bumper gains.
The world’s most valuable company Nvidia will report its third-quarter results after the bell.
Shares already climbed 4.9% overnight and options imply a big move of almost 9% either direction in the $3.6 trillion stock often seen as a barometer for the tech sector’s shift to AI.
Nasdaq futures rose 0.2% on Wednesday on top of a 1% jump overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat and Tokyo’s Nikkei slipped 0.3%.
Bitcoin last held at $91,914, having broken above $94,000 for the first time overnight on expectations that US President-elect Donald Trump’s administration will be crypto-friendly.
This is an intra-day update
Source: Brecorder
