Profit-Taking Returns to PSX as KSE-100 Index Falls by Over 1,500 Points

A day after the record 4,411 points gain, the benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) declined by over 1,500 points on Tuesday as profit-taking returned.  The KSE-100 index lost 1,509 points to close at 112,414 points, down 1.34 percent over the previous closing. The market opened on a positive note with the KSE-100 Index briefly crossing the 115,000 level but the gains were soon wiped out as investors opted for profit-taking.  In a note brokerage house Topline Securities highlighted that the KSE-100 Index exhibited significant volatility today, oscillating between highs and lows as market sentiment remained uncertain.    Topline attributed the market’s downturn primarily to concerns over rising leverage positions, which heightened risk perceptions. This, combined with increasing borrowing costs, compelled investors to trim their portfolios. Furthermore, the approaching last few days of December contract added additional pressure on market participants, resulting in cautious and selective trading behavior, it added.  The primary contributors to the upward movement were UBL, DAWH, SNGP, TRG, and APL, which collectively added 351 points to the index. On the flip side, FFC, MARI, MCB, HUBC, and ENGRO emerged as the major laggards of the day, collectively dragging the index down by 850 points, it added.  A total of 880,598,305 shares were traded during the day as compared to 806,701,244 shares the previous day. The price of shares stood at Rs. 54.45 billion against Rs. 48.23 billion on the last trading day.  456 companies transacted their shares in the stock market today with 129 of them recording gains and 288 sustaining losses, whereas the share price of 39 companies remained unchanged.