KSE-100 closes marginally in the red as profit-taking erases early gains

The KSE-100 closed in the red on Wednesday after profit-taking wiped out more than 600 points the index had gained during the opening hours of trading.

The index started the session positive, hitting an intra-day high of 77,800.04.

However, investors resorted to profit-taking in the second half of the trading session, taking the index to an intra-day low of 77,086.82.

At close, the benchmark index settled at 77,114.49, down by 76.85 points or 0.10%.

“Pakistan equities moved in both directions as bullish and bearish forces confronted throughout the session to take the helm at PSX. However, bears emerged as a winner,” brokerage house Topline Securities said in its post-market report.

Investors chose to swtich between selective stocks of power, energy, fertiliser, auto, tech and cement sectors. Resultantly, BAHL, EFERT, FFC, UBL & PPL lost 263 points, cumulatively. On the flip side, PPL, HBL & ENGRO collectively added 121 points as they witnessed rejuvenated buying interest in them, it added.

Ismail Iqbal Securities said the equity market ended the day relatively flat.

“The benchmark index remained volatile throughout the session due to the result season,” it said.

On Tuesday, after losing more than 1,100 points in the previous session, the KSE-100 rebounded as it closed the day with a modest gain of 107 points, taking a cue from a recovery in the global stock markets.

In a key development, Finance Minister Muhammad Aurangzeb said that rollover of loan from friendly countries for Pakistan would be made in the ongoing month and added discussion with the International Monetary Fund (IMF) are being held on a daily basis for the new Extended Fund Facility (EFF).

Globally, Asian share markets were mostly firmer on Wednesday after Wall Street bounced and concerns about a US recession were reassessed, though Japanese stocks took a dip as heightened volatility squeezed leveraged positions.

The Nikkei’s drop of 0.6% was relatively minor compared with Monday’s 13% dive and Tuesday’s 10% rally, leading to hopes investors were finding their footing.