Islamabad, Dec 25: After a strong rally on Monday, the Pakistan Stock Exchange (PSX) faced a challenging session on Tuesday, with the benchmark KSE-100 Index dropping 1,509.61 points, or 1.33%, to close at 112,414.80.
The day began positively, with the index reaching an intra-day high of 115,036.49 points. However, profit-taking and heavy selling quickly reversed these gains, driving the index down to an intra-day low of 112,294.42 before stabilizing at the close.
Several key sectors, including automobiles, cement, chemicals, commercial banks, oil and gas exploration companies, power generation, and refineries, experienced significant selling pressure. Major stocks such as HUBCO, MARI, OGDC, PPL, PSO, SHEL, HBL, MCB, and NBP all closed lower, contributing to the overall market downturn.
Brokerage firm Topline Securities attributed the decline to rising leverage positions, which increased risk perceptions and led investors to reduce their portfolios. Additionally, higher borrowing costs and the upcoming closure of December contracts contributed to cautious trading behavior.
This downturn came on the heels of Monday’s remarkable rally, where the KSE-100 Index surged by over 4,400 points the second-largest single-day point gain closing at 113,924.41.On the currency front, the Pakistani rupee saw a slight appreciation against the US dollar, gaining 0.04% to close at 278.47 in the inter-bank market.
Market participation remained strong, with the all-share index recording a volume of 880.60 million shares, up from 857.83 million the previous day. The total value of shares traded increased to Rs54.45 billion from Rs50.55 billion. WorldCall Telecom led the volumes with 127.41 million shares, followed by Fauji Foods Ltd with 67.13 million shares, and Sui Southern Gas with 33.56 million shares. Out of 456 companies traded, 129 advanced, 288 declined, and 39 remained unchanged.
