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PSX KSE-100 Crosses 86,000 for the First Time but Closes Flat
The Pakistan Stock Exchange (PSX) experienced a volatile session on Wednesday as its KSE-100 Index crossed 86,000 points during intra-day trading, marking the first time in history. However, late-selling pressure caused the index to retreat and close flat.
Record-Breaking Intra-Day High
The KSE-100 Index began the session with strong buying momentum, hitting an intra-day high of 86,451.43 points. This milestone marked the highest level the index has ever reached. Despite this, the index faced significant selling pressure in the second half of the day.
At the end of the session, the KSE-100 closed at 85,669.28 points, gaining only 5.30 points, or 0.01%.
Profit-Taking and Volatility
“The session experienced significant volatility, peaking at 86,451 and dipping to 85,444, largely due to profit-taking,” brokerage house Topline Securities noted in its post-market report. The inability of the index to maintain levels above 86,000 contributed to the volatility. Local institutional buying activity primarily supported the market during the day.
Key Movers
Among the major contributors to the index were MCB, LCI, BAHL, HUBC, and HBL, which together added 292 points. However, negative movements from FFC, EFERT, and POL deducted 215 points, balancing out the gains.
Bullish Trend Linked to Inflation Decline
The recent bullish trend in the market is being attributed to a greater-than-expected decline in the inflation rate, which has raised hopes for a further reduction in the policy rate during the upcoming Monetary Policy Committee (MPC) meeting on November 4.
Saad Khan, an analyst at Imran Ismail Securities, commented, “A positive real interest rate of more than 10% advocates further rate cuts, which could go down by 250-350 basis points.”
Previous Day’s Gains
On Tuesday, the PSX continued its record-breaking trend as investors demonstrated strong interest in the E&P and fertilizer sectors. The KSE-100 Index closed at 85,663.98 points, rising by 753.68 points, or 0.89%.
Global Markets and Currency Performance
In global markets, Chinese stocks faced significant losses on Wednesday, with both the Shanghai Composite Index and the CSI300 Index dropping over 5%. The downturn followed a rally on Tuesday when Chinese markets hit two-year highs.
Meanwhile, the Pakistani rupee ended marginally weaker against the US dollar, depreciating by 0.02% in the inter-bank market. The rupee closed at 277.72, down by Re0.05 against the dollar.
Trading Volume and Market Leaders
Trading volume on the all-share index increased to 596.05 million shares, up from 506.56 million on Tuesday. However, the value of traded shares decreased to Rs31.34 billion, compared to Rs33.05 billion in the previous session.
K-Electric Ltd led the volume with 55.8 million shares, followed by Hub Power Co.XD with 39.67 million shares, and PTCL with 32.23 million shares.
Shares of 448 companies were traded, with 208 registering gains, 172 recording losses, and 68 remaining unchanged.
