Equities retreat after three-session rally
KARACHI: After a three-session recovery rally, the Pakistan Stock Exchange (PSX) fell on Thursday as some investors took profits, while a rebound in oil prices renewed fears of a spike in inflationary pressures. The economic outlook grew more uncertain amid talks with the visiting IMF mission, and PTI’s march call on the Capital fuelled political uncertainty, forcing the benchmark KSE-100 index…
Karachi Stock Exchange (PSX) saw a retreat after a three-session rally on Thursday as some investors booked profits, while a rise in oil prices sparked concerns about potential inflation. The economic outlook grew murkier as talks with the visiting IMF mission and political uncertainty surrounding PTI's march in the Capital hampered the benchmark KSE-100 index, resulting in a bearish performance.
The PSX closed at 170,498.95 points, slipping by 1,733.57 points or 1.01 percent, after trading between a high of 172,491.17 and a low of 170,418.38. Profit-taking intensified in the latter part of the session, putting pressure on the benchmark index. The market reverted sharply from its early gains as profit-taking in the second half of the session eroded a significant part of the market's recent gains.
Despite profit-taking and higher oil prices, market sentiment remained fragile and cautious, with heightened geopolitical tensions in the Middle East and fears over elevated global crude prices, as Brent crude surpassed the $100 per barrel mark. Analyst Ali Najib of Arif Habib Ltd noted that market sentiment remained subdued due to the spike in international oil prices, and limited progress in US-Iranian diplomatic talks.
Investors were wary of a potential US ban on diesel exports, adding to the risk-off sentiment. On the sectoral front, Attock Refinery, National Refinery, and Cnergyico Pk signed agreements with state-owned Inter State Gas Systems to upgrade their refineries under Pakistan’s Oil Refining Policy for Upgradation. Geely, the world's eighth-largest automaker, was reportedly set to enter the Pakistani market with three SUV models, marking a significant development in the sector.
However, investor participation weakened, with trading volume dipping 1.76 percent to 759.9 million shares, while turnover value rose 4.10 percent to Rs27.5 billion. Analysts foresee volatile market sentiment, with energy prices, external sector risks, and ongoing IMF review talks continuing to impact market direction.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
