It was a rough day for investors at the Pakistan Stock Exchange (PSX) on Thursday, as the benchmark KSE-100 index took a significant dive, closing down over 700 points after an early surge. Starting off strong, the market briefly hit an intra-day high of 123,418 within the first hour. However, profit-taking quickly set in, causing the index to plummet to 122,142 by day’s end. Ultimately, the KSE-100 settled at 122,046.46, down 715.18 points, marking a drop of 0.58%.
According to Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL), this decline was not entirely unexpected following the impressive increase of nearly 6,600 points over the past couple of sessions in response to the recent Iran-Israel ceasefire. On Thursday, the market experienced a much-needed profit-taking day as it corrected itself. As the day progressed, 71 stocks declined while only 27 saw gains, showcasing a broadly negative market sentiment.
Interestingly, some stocks did manage to shine amid the downturn. Engro Fertilisers led the pack with a gain of 2.22%, followed by National Foods, which jumped by 8.07%. Pakistan Petroleum also showed resilience with a modest gain of 0.79%. Nonetheless, major players like Bank AL Habib, Lucky Cement, and Habib Bank dragged the index down, with declines of 2.84%, 1.86%, and 2.59%, respectively.
In a key development for the cement industry, the Supreme Court delivered a favorable ruling by suspending a Lahore High Court directive that required Punjab-based manufacturers to pay a 6% royalty on their ex-factory prices. This decision provided a welcomed boost to the cement sector, making investors optimistic.
Another positive highlight was the announcement from Organic Meat Company, which saw its shares rise by 5.64% after revealing plans to export beef casings to Europe. This strategic move indicates a step towards diversification and growth, signaling optimism among investors.
As the trading week wraps up, the KSE-100 index has gained 1.69% so far, with the support level at 120,000 becoming crucial for any potential move toward 130,000. On the volume front, a total of 758.5 million shares changed hands, slightly up from 749.8 million the previous day. The overall value of shares traded reached Rs30 billion.
The trading environment saw 473 companies involved, with 200 closing higher, 237 lower, and 36 remaining unchanged. Leading the volume was Pakistan International Bulk Terminal at 37.5 million shares, despite a loss of Rs0.06 to close at Rs8.52. WorldCall Telecom followed closely, with 33.3 million shares traded, down Rs0.04 at Rs1.45. Pervez Ahmed Consultancy also made a notable appearance, trading 33 million shares, gaining Rs0.25 to close at Rs3.29.
As we approach the final session of the week, all eyes will be on how the market reacts. Will it recover from this profit-taking phase, or could we see further declines? Only time will tell.
