After a strong rally in the previous session, the KSE-100 index pulled back on Wednesday as investors turned to profit-taking at record highs. The index lost 165 points and closed at 139,254 after hitting an early high of 140,202. The shift marked a cautious return to realism as traders locked in gains amid volatility and key upcoming events.
Early Gains Fade by Midday
The market opened on a positive note, carrying forward momentum from earlier sessions. The KSE-100 quickly climbed to an intra-day peak of 140,202, sparking hopes of a sustained upward push. However, investor sentiment quickly turned as selling pressure increased, pushing the index into negative territory by the close.
According to KTrade Securities, Wednesday’s session reflected a “mixed tone,” driven largely by profit-taking at elevated levels. The brokerage noted that volatility would likely remain high due to the futures rollover period and the ongoing corporate earnings season.
Read: PSX Drops 380 Points Amid Profit-Taking in the Market
Mixed Performances Across Sectors
Despite the index’s overall decline, some stocks continued to perform. Bank AL Habib led the gainers, rising 1.95%, followed by Mari Petroleum with a 1.04% increase and Hub Power, which added 0.87%. These gains helped cushion the day’s losses but were not enough to offset the broader selling trend.
On the flip side, Engro Holdings and Habib Bank both lost 1.23%, contributing significantly to the index’s fall. Pakgen Power saw a sharper drop, tumbling 6.8% as investors pulled out. MCB Bank also remained among the key laggards.
Corporate Developments Influence Trading
Some corporate announcements added to the day’s cautious mood. PIA Holding Company saw a 1.2% decline after news emerged that the airline’s buyer would need to invest Rs70 billion over five years, under the revised restructuring plan. This sparked selling interest in the stock. According to Arif Habib Limited (AHL), pre-qualified bidders are expected to begin site visits and expert meetings starting next week, potentially influencing market dynamics further.
Meanwhile, Systems Ltd added 0.91% as it hinted at a potential acquisition in the IT and IT-enabled services sector, generating moderate interest among investors.
Eyes on Monetary Policy and Market Outlook
With the State Bank of Pakistan’s monetary policy announcement due on July 30, investors appear to be treading cautiously. Any shift in the interest rate could affect short-term equity trends, especially in banking and energy stocks. Many investors have opted to stay on the sidelines, waiting for clarity.
AHL noted that while Wednesday’s session saw a dip, the broader market outlook remained positive. They expect continued attention on the 140,500 level later this week, suggesting that the index may attempt to retest the psychological resistance level.
Trading Volume Shows Strength
Despite the pullback, overall market activity remained strong. Trading volumes increased to 656.6 million shares, up from 629 million on Tuesday. The total traded value stood at Rs32 billion, showing sustained investor interest despite the dip in the index.
A total of 483 companies saw action during the session. Among them, 211 stocks closed higher, 243 declined, and 29 remained unchanged. WorldCall Telecom led the volume chart once again, with 55.4 million shares traded. The stock rose by Rs0.08 to close at Rs1.54, as speculative interest continued.
Short-Term Volatility, Long-Term Optimism
While Wednesday’s session may have disappointed those hoping for a continued rally, the pullback was seen as a natural correction after recent highs. Profit-taking is common when markets hit psychological resistance levels, and many analysts believe that underlying optimism remains intact.
As earnings reports roll in and key economic indicators approach, the PSX is likely to remain in flux. For now, investors are adjusting their positions, closely watching both corporate performance and macroeconomic signals.
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