KSE-100 retreats as profit-taking kicks in

Despite getting the International Monetary Fund (IMF)’s Executive Board approval for the loan tranche of $1 billion, Pakistan stocks ended the session on a negative note amid profit-booking on Thursday.

Both volume and value of shares traded declined from the last session, as the benchmark KSE-100 index closed below the 46,000 level, dropping 0.56%.

On Thursday, the index started off on a positive note, as the bourse welcomed revival of the IMF programme, pushing the index towards an intra-day high of 46387.64. However, profit-taking soon kicked in.

At close, the KSE-100 settled with a drop of 256.22 points or 0.56% to finish at 45,862.93.

KSE-100 settles over 46,000 for first time since November

"Investors could not digest the psychological level of 46,000 as profit-taking was witnessed across the board. Main board activity remained gloomy. On the flip side, activity continued to remain sideways as market witnessed hefty volumes in 3rd-tier stocks," said Arif Habib Limited (AHL) in its post-market comment.

The KSE-100 Index had been on an upward trajectory for the last few sessions, having gained nearly 2.7%. Many believed the momentum could continue with the IMF programme revival.

However, analysts said it would take time for a bull-run to resume.

“Investors are expecting the PSX to suddenly change gear into an extreme bullish mode. Market confidence will return gradually as the economy improves,” said Najam Ali, CEO Next Capital, in a tweet post.

“Investor sentiment can be destroyed overnight but doesn’t normalise overnight. First phase is the end of the downturn,” he added.

On the corporate front, Amreli Steels Limited announced its 2QFY22 financial result, where the company posted a profit after tax (PAT) of Rs602 million compared to Rs312 million in the same period last year.

Volumes on the all-share index decreased to 328 million from 360.8 million on Wednesday. Value of shares traded also marginally declined to Rs10.51 billion, down from Rs10.94 billion a day ago.

WorldCall Telecom was the volume leader with 32.82 million shares, followed by Telecard Limited with 20.30 million shares, and Ghani Global Holdings with 16.80 million shares.

Shares of 369 companies were traded on Thursday, of which 133 registered an increase, 207 recorded a fall, and 29 remained unchanged.