KARACHI: The Pakistan Stock Exchange (PSX) closed lower on Tuesday as investors resorted to profit-taking, erasing an early buying rally that had pushed the benchmark KSE-100 Index into positive territory.
The benchmark index settled at 164,776.44, shedding 347.97 points, or 0.21%, after fluctuating between an intraday high of 166,070.48 and a low of 164,773.67.
The market opened on a positive note, with the KSE-100 Index gaining 558.25 points, or 0.34%, to reach 165,682.66 in early trading. By midday, it was trading 470.14 points higher at 165,594.55.
However, the initial momentum faded as investors became cautious and locked in profits, pushing the benchmark into negative territory by the close.
Profit-Taking Erases Early Market Gains
Buying interest was initially visible across several key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and oil marketing companies.
According to KTrade Securities, sentiment received an early boost from Brent crude trading below $105 a barrel, helping the KSE-100 Index rise by more than 700 points at its intraday peak.
However, selling pressure increased as the session progressed, erasing the gains despite oil prices remaining near the $105 mark.
KTrade said profit-taking across the market ultimately left the benchmark down 348 points, or 0.21%, compared with the previous session.
Banking, Technology and Energy Stocks Weigh on Index
Selling pressure was concentrated in commercial banking, technology, and oil and gas stocks, which contributed to the market’s decline.
United Bank Limited (UBL), Habib Bank Limited (HBL), Lucky Cement and Mari Energies were among the stocks weighing on the benchmark index.
Fertiliser stocks provided some support, but their gains were insufficient to offset the broader selling pressure.
The session highlighted a shift in investor sentiment, as traders moved to secure profits following the early advance rather than sustain buying momentum throughout the day.
PSX Extends Decline as Rising Oil Prices and Middle East Tensions Shake Investor Confidence
Trading Volume Increases to 383.7 Million Shares
Despite the decline in the benchmark index, trading activity increased during the session.
Total market volume rose to 383.7 million shares, compared with 362.9 million shares traded on Monday. The value of shares traded stood at Rs13.1 billion.
LSE Financial Services emerged as the volume leader, with 32.3 million shares changing hands. Its share price fell Rs0.16 to close at Rs1.03.
Cautious Trading Expected to Continue
KTrade Securities said cautious trading was likely to persist, with investors expected to remain selective and accumulate shares during market dips rather than aggressively chase rising prices.
According to the brokerage, a sustained recovery would depend on stronger investor participation and developments on the geopolitical front, particularly those affecting global oil prices and domestic market sentiment.
The session’s reversal showed that the market remained sensitive to changes in investor confidence, even as lower crude oil prices helped support sentiment during early trading.
For the next sessions, investors are likely to monitor geopolitical developments, oil price movements and buying activity for indications of whether the benchmark can regain its upward momentum.
