KARACHI: After two consecutive sessions of a strong bull run, the Pakistan Stock Exchange (PSX) experienced a mixed trading day on Wednesday, marked by heightened volatility and profit-taking.
The benchmark KSE-100 index recorded a sharp swing, rising as high as 885 points and dipping by 427 points during the session, before closing almost flat at 118,537 points, down 39 points or 0.03pc.
The market exhibited a tug-of-war between gainers and losers, with heavyweight stocks pushing and pulling the index in opposite directions, according to Topline Securities.
On the positive side, Engro Holdings Limited, Fauji Fertiliser Company Limited, Meezan Bank Limited, United Bank Limited, and Pakistan Petroleum Limited collectively added 470 points to the index.
However, this upward momentum was largely offset by Oil and Gas Development Company Limited, MCB Bank Limited, Bank Al Habib Limited, Pakistan State Oil Company Limited, and Mari Petroleum Company Limited, which together dragged the index down by 354 points.
Despite the cautious tone, trading activity remained relatively high, with 605 million shares changing hands and the traded value reaching Rs41.8 billion — the highest in five months. At-Tahur Limited led the volumes chart, with 38.7 million shares traded.
According to Ahsan Mehanti of Arif Habib Corporation, the session ended flat as investors remained cautious ahead of the next year’s federal budget. He noted that weak macroeconomic signals, including a 10 per cent month-on-month decline in car sales for April and concerns about tax regulations impacting cement distributors, dampened sentiment.
“Concerns over ongoing tensions over Pak-India diplomatic ties, and rupee’s instability played a catalyst role in the bearish close,” he said.
Ali Najib of Insight Securities said that after a staggering 15,000-point rally (14.5pc) over the last three sessions, the market appears to have entered a consolidation phase. The index, he added, traded in both directions before ending flat, reflecting profit-booking at higher levels.
He observed that the intraday high of 119,461 points encouraged profit-takers to offload positions, pushing the index down to an intraday low of 118,149 points before settling.
Published in Dawn, May 15th, 2025
