PSX snaps 5-day bullish streak, falls by over 1,100 points

The Pakistan Stock Exchange (PSX) snapped a five-day bullish streak on Tuesday, falling by over 1,100 points to settle below the 187,000-point mark as investors resorted to profit-taking following the market’s recent record-breaking rally.

The reversal came after economic optimism — driven by falling energy prices and a likely cut in the interest rate — propelled the KSE-100 index above 187,000 points on Monday, leading analysts to believe it might surpass its all-time high of 189,167 in January.

Despite hitting a high of 188,126.67 points early in today’s session, the index then plunged by nearly 1,500 points before 10am, and remained volatile before declining further later in the session. It hit a low of 186,189.21 points at 3:12pm before closing at 186,255.55 points, down by 1,199.14 (0.64 per cent) from its previous close of 187,454.69.

According to Topline Securities Ltd, the decline was driven by selling pressure emerging across key sectors during the latter half of the session.

It noted that investor sentiment remained cautious amid weakness in regional equity markets, prompting participants to lock in recent gains after the KSE-100’s strong upward run over the past several sessions.

On the index contribution front, heavyweight stocks FFC, PPL, UBL, OGDC, and LUCK were the major drags on the benchmark index, collectively shaving approximately 649 points off the day’s performance.

“Despite today’s decline, the broader market outlook remains supported by improving macroeconomic fundamentals and sustained institutional interest,” Topline added. ...